ACU Members Meet in Iran to Address De-Dollarization Concerns

ACU Members Meet in Iran to Address De-Dollarization Concerns

The 51st annual Asian Clearing Union (ACU) meeting in Tehran, Iran, was attended by high-ranking officials from nine Asian countries. The annual meeting was hosted by the Central Bank of Iran and focused on the pressing issue of de-dollarization. Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka were among the participating ACU members. The Central Bank of Russia’s governor and officials from Belarus and Afghanistan also attended the meeting.

9 Asian Countries in Tehran to Discuss De-Dollarization Measures

The two-day 51st annual Asian Clearing Union (ACU) meeting began on Tuesday in Tehran, with participation from officials representing members of the Asian Clearing Union (ACU) as well as several other countries. The meeting was hosted by the Central Bank of Iran, and de-dollarization was the key topic discussed at the event, which was reported by Tasnim news service.

The ACU currently has nine members: Bangladesh Bank, Royal Monetary Authority of Bhutan, Reserve Bank of India, Central Bank of Iran, Maldives Monetary Authority, Central Bank of Myanmar, Nepal Rastra Bank, State Bank of Pakistan, and Central Bank of Sri Lanka. Besides the top officials from the ACU members, the governor of the Russian central bank attended the meeting as an observer, along with officials from Belarus and Afghanistan.

Commenting on the role of the US dollar in the world economy and a growing number of countries moving away from the USD in trade settlements, Iran’s First Vice President Mohammad Mokhber said:

"De-dollarization is not a voluntary choice by countries anymore; it is the countries’ inevitable response to the ‘weaponization project of the dollar.’"

During the event, the First Vice President of Iran highlighted the adverse effects of the dollar's dominance on global trade and expressed the Islamic Republic's readiness to strengthen banking and trade ties with ACU member states.

Iran Calls for Enhanced Banking and Trade Relations among ACU Member States

Addressing the growing trend of countries seeking to diminish their reliance on the US dollar, the Iranian first vice president pointed out that the weakening of the dollar poses a significant challenge to the United States’ global influence. He emphasized that the Islamic Republic is ready to enhance its banking and trade relations with other nations, particularly ACU member states.

Iran has been actively pursuing de-dollarization measures, including phasing out the USD in bilateral trade agreements with Russia. President Ebrahim Raisi recently urged the Central Bank of Iran to abandon the US dollar in favor of national currencies while also expressing interest in joining the BRICS economic bloc to counter Western influence and promote a multipolar world.

The growing global trend of countries reducing their reliance on the US dollar is further exemplified by the BRICS countries (Brazil, Russia, India, China, and South Africa) and ten Southeast Asian nations within the Association of Southeast Asian Nations (ASEAN). The BRICS economic group has set the ball in motion for creating a common currency to be discussed at its upcoming leaders’ summit in August in Johannesburg, South Africa. Ten Southeast Asiancountries, members of the Association of Southeast Asian Nations (ASEAN), also recently agreed to encourage the use of national currencies instead of the US dollar.

What is your take on the growing number of countries trying to move away from the US dollar? Please post your comment.