Banks asked not to transact with Sri Lanka through ACU mechanism

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 the ACU mechanism with effect from October 14, 2022; all Authorised 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 on Thursday, reports BSS.

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