(NewsRadio); The Central Bank of Bangladesh has instructed banks to refrain from completing transactions with Sri Lanka through the Asian Clearing Union (ACU) system.
The Central Bank’s Foreign Exchange Policy Department issued a circular yesterday and sent it to top executives of Bangladesh’s banks.
The ACU is an arrangement through which participating countries settle import payments for intra-regional transactions.
Sri Lanka, Bangladesh, Bhutan, India, Iran, the Maldives, Myanmar, Nepal and Pakistan, are members of ACU, which has a headquarters in Tehran.
Central Banks of the countries have to make payments every two months.
According to Business Standard, the Central Bank of Bangladesh has said if any Bangladeshi bank wants to settle a transaction with a Sri Lankan commercial bank, they can do it by ignoring the ACU system.