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BB asks banks not to transact with Sri Lanka through ACU mechanism

GreenWatch Desk Banking 2022-10-28, 12:27am




Bangladesh Bank BB) has asked banks not to do transactions with Sri Lanka through the Asian Clearing Union (ACU) mechanism.

"In response to the self-motivated decision by the Central Bank of Sri Lanka (CBSL) to remain temporarily suspended from ACU mechanism with effect from October 14, 2022; all Authorized Dealers (ADs) are advised not to do any trade and trade related transactions with Sri Lanka through ACU mechanism," as per a BB circular issued today.

The ACU is an arrangement through which participating countries settle import payments for intra-regional transactions, reports BSS.