ByNews Desk- The Cradle
During the 51st meeting of ACU member states, the central bank chiefs of Iran and Pakistan discussed linking payment systems and ‘reducing dependency on dominant currencies’
During the meeting, Farzin called for “the interaction of the central banks of the member states in the field of applying a non-SWIFT financial messaging system,” according to Iran’s semi-official news outlet, Tasnim.
He also called for “connecting the banking payment cards between Iran and Pakistan and also setting up a joint committee to follow up on banking agreements.”
“Talks have been made with Pakistani banks in the relevant field and they have welcomed the issue of launching a banking channel between Iran and Pakistan,” Farzin said.
The Pakistani central bank chief also called for “development of banking relations” with Iran.
While addressing the member states, Ahmad said that the ACU “can present new ideas, and it is hoped that new currencies will be used instead of the US dollar.”
“It is high time to activate the role of central banks … I am sure that we can have new initiatives in this respect,” he said.
According to Tasnim, the main topics discussed at the 51st ACU meeting were “‘De-dollarization’ and reducing the dependency on dominant currencies.”
Iran has begun discussing dumping the dollar with a number of countries, including Russia and India, as part of a rapidly growing de-dollarization trend. Other regional countries have also been moving away from the dollar, including Algeria and Iraq.
In a bid to strengthen its national currency, Iraq just issued a ban against making US dollar transactions.
The ACU, headquartered in Iran, was established in 1974 as part of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
It is aimed at facilitating convenient settling of payments for regional economic transactions.
Member states include Bangladesh, Myanmar, and India.
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