ACU Accounts and Export Payments Quiz

To provide guidelines for issuing account statements for ACU accounts

To facilitate foreign currency payments between participating countries (correct)

To limit the overall exposure of Authorized Dealers in foreign currency accounts

To standardize the process of opening and amending Letters of Credit

The Authorized Dealer requests the State Bank of Pakistan to transfer the required funds from its own account to the correspondent bank in the other country

The Authorized Dealer surrenders the equivalent amount in USD/JPY/EUR to the State Bank of Pakistan, which then advises the Central Bank of the other country to make the funds available (correct)

The Authorized Dealer directly transfers the required USD/JPY/EUR amount to the correspondent bank in the other participating country

The Authorized Dealer issues a Letter of Credit in PKR to the State Bank of Pakistan, which then arranges the foreign currency transfer

To provide guidelines and regulations for the ACU clearing arrangement

To maintain the ACU Nostro accounts on behalf of the Authorized Dealers

To approve and facilitate the opening and amendment of Letters of Credit under the ACU mechanism

To credit the account of the Central Bank of the other country by debiting SBP's account (correct)

<p>To align the foreign currency exposure of Authorized Dealers with the regulations set by the State Bank of Pakistan</p> Signup and view all the answers

<p>Authorized Dealers must issue ACU account statements on a monthly basis, as well as whenever a transaction occurs</p> Signup and view all the answers

<p>Nostro accounts under the ACU mechanism are maintained in 'ACU Dollar', 'ACU Yen' or 'ACU Euro', rather than in the local currencies</p> Signup and view all the answers

<p>It enables the settlement of payments between banks in participating countries without the need for USD/JPY/EUR transfers</p> Signup and view all the answers