The Central Bank of Iran has developed a special messaging system for banking communication among member states of the Asian Clearing Union, the CBI deputy for international affairs, Mohsen Karimi, said. It is to be launched next month.
“The subject was brought up at last year's ACU summit and was reviewed in special commissions. The union members have called for replacing the existing SWIFT (Society for Worldwide Interbank Financial Telecommunication) system,” IBENA quoted him as saying.
Karimi stated that the implementation of the new system as a replacement for SWIFT is likely to start the next month among the union members.
“This messenger will serve exclusively for communication among the members, covering 100% of their needs and replacing SWIFT, thereby reducing transaction costs between members.”
He highlighted the key benefit of the new system stating, "The primary benefit is the exchange of banking messages among members without the need for SWIFT."
Digital Currencies
Regarding the use of digital currencies of ACU member countries, the official said the Tehran meeting this week emphasized the utilization of digital currencies by central banks. However, there was no discussion about cryptocurrencies. The adoption of digital currencies is under review and a part of members' commercial transactions will be conducted using digital currencies issued by their central banks.
Nine Asian nations are members of the Asian Union. Belarus and Mauritius have also said they want to join.
The 51st ACU session was held Wednesday in Tehran presided by the Iran’s first vice president, Mohammad Mokhber, and central bank governors of member states.
Participants included Elvira Nabiullina, governor of the Bank of Russia, Sergei Kalichits, deputy governor of the Central Bank of Belarus, and representatives from the Central Bank of Afghanistan and the Islamic Development Bank.
Jameel Ahmad, the governor of the State Bank of Pakistan, handed over the presidency of the union to Mohammad Reza Farzin, governor of the Central Bank. Farzin elaborated on the Union's future plans and noted the role of the Union in the global economy.
"Accepting new members with the aim of synergy, gaining new ideas and insight and creating added value for the Union are factors that need to be considered to help strengthen the Union. Diversifying the Union's currency basket by using the national currencies of member states and other non-convertible currencies can and should help promote de-dollarization in trade, further preserve and promote the foreign currency reserves of members and help create an effective framework for settling commercial payments".
The proposed amendments to the charter, which have been reviewed and approved by the technical committees, will significantly contribute to empowering the Union, he told the conferees.
Completion of the ACUMER, ICU's interbank messaging system, practical measures to diversify the Union's currency basket, the prospect of trade among members using central bank digital currencies (CBDCs), establishment of subcommittees, linking card payment systems among members, and training programs to share experience and knowledge are key items on the Union's agenda, according to Farzin.
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 members include Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal, Pakistan, Sri Lanka and Iran.
At the outset the group strived to boost regional harmony and cooperation in monetary transactions among members and create an efficient system for payments in and among member countries and on multilateral levels.
Farzin noted that effective measures were taken last year to enhance the performance of the Union. "The steps include presenting important proposals for amending the Union charter and talks with 20 plus countries wanting to join the Union."
