The Royal Monetary Authority of Bhutan was admitted as the eighth member on December 9, 1999. The Asian Clearing Union is a facility for the multilateral settlement of payments between the participants for all current international transactions and capital transactions to the extent such transactions have been mutually agreed upon by the participants. It is intended to promote trade expansion and monetary cooperation between the participants and to encourage the use of participants' currencies in settlements. Payments through the ACU are denominated in major international convertible currencies, particularly US dollars.
Participants undertake to accept and complete all eligible payments.
Settlements among central banks in respect of these payments are effected in US dollars or other mutually acceptable international convertible currency at the end of each bimonthly settlement period. At its seventeenth annual meeting held in March 1989 in Mumbai, the Board of Directors approved a Swap Arrangement within the ACU, which is presently in operation. Each participant appoints one Director and one Alternate Director. The Board selects a Chairman and Vice Chairman from its members. The Board meets at least once a year and decisions are taken by a simple majority of all Directors, except as provided in the Agreement.