The deputy governor of the Central Bank of Belarus made a formal request on behalf of his country to join the Asian Clearing Union (ACU). The request was submitted to Mohammad Reza Farzin, the governor of the Central Bank of Iran, who currently is the chair of the Union.
According to a CBI press release, in the meeting Farzin and Sergei Kalichits emphasized the use of local currencies in bilateral trade, stating that building closer ties through bilateral and multilateral monetary deals could play a crucial role in the development of two-way trade.
The ACU was established in December 1974 at the initiative of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). Its member countries include Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal, Pakistan, Sri Lanka and Iran.
The 51st ACU Summit opened Tuesday in Tehran at the level of governors of central banks, their deputies plus representatives of the central banks from Russia, Belarus, Afghanistan and the Islamic Development Bank, Mohsen Karimi of the CBI said.
The organization originally strived to boost regional harmony and cooperation in monetary transactions among members of the union and create an efficient system for payments in and among the member countries and also on a multilateral basis.
During the Tehran meeting, participants will discuss amendments to the Union’s charter aimed at facilitating the admission of new members and the use of national currencies of member states for trade.
Regarding Belarus' application to join the ACU, Farzin said, “Belarus, with a strong economic potential, can contribute to the growth of the Union.”
The ACU can and should serve as an influential body in diminishing the use of major currencies and promote local currencies. “With the ways and means provided by the ACU, the two countries can trade using their national currencies and boost bilateral trade.”
The CBI chief said “a monetary and banking roadmap is necessary for boosting economic ties between the two nations to achieve desirable results”.
The visiting Belarussian official stressed interest in expanding monetary and banking relations with Iran and thanked Iran for supporting Belarus' membership in the Union.
Kalichits added that by joining the Union Belarus can bypass western restrictions on the use of foreign currency in trade.
“Significant steps have been taken in recent months to establish banking relations between the two countries, and both sides are determined to elevate ties to a higher level via bilateral trade.”
Karimi, the CBI deputy governor for international affairs, referred to the memorandum between Iran and Belarus regarding the latter’s accession to the ACU. “This matter [Belarus’s application] will be raised in the meeting [on Wednesday]. Hopefully it will be able to join the ACU soon with the approval of member states.”
Karimi noted the political and economic message Belarus's accession to the Union carries. “Powerful states cannot isolate independent countries in the global economy by imposing sanctions”.
The meeting is to decide on de-dollarization and reducing the use of the greenback in trade among ACU members. Talks also will focus on the interbank messaging system to achieve independence from SWIFT.
He recalled the successful experience of connecting Iran's interbank messaging system (SEPAM) to Russia’s system and expressed Iran’s readiness to connect the interbank messaging networks of Iran and Belarus plus the payment network “as it can help build closer economic interaction between the two countries.”
The CBI and Russia signed a deal in January to connect their national interbank communication and transfer systems to help boost trade and ease two-way bank transactions.
Per the deal, 52 branches of Iranian banks and four unnamed foreign banks are to use Iran’s SEPAM to connect with 106 banks using Russia's System for Transfer of Financial Messages or SPFS.
