ARTICLE I-ASIAN CLEARING UNION
The central banks and other monetary authorities on whose behalf the present Agreement is signed, hereinafter referred to as "participants", agree to establish a system for clearing payments among their respective countries on a multilateral basis, hereinafter referred to as the "Asian Clearing Union", which shall be governed by the provisions of this Agreement and by the rules, regulations and decisions agreed within its framework.
The purposes of this Agreement are:
(a) To provide a facility to settle, on a multilateral basis, payments for current international transactions among the territories of participants;
(b) To promote the use of participants' currencies in current transactions between their respective territories and thereby effect economies in the use of the participants' exchange reserves;
(c) To promote monetary co-operation among the participants and closer relations among the banking systems in their territories and thereby contribute to the expansion of trade and economic activity among the countries of the ESCAP region; and
(d) To provide for currency swap arrangement among the participants so as to make Asian Monetary Units available to them temporarily.
SECTION 1- Eligibility to participate
(a) Participation in the Asian Clearing Union shall be open to the central bank or monetary authority of each regional member or associate member of ESCAP.
(b) Participation in another clearing group or arrangement is not precluded by participation in the Asian Clearing Union.
SECTION 2- Original participants
Original participants shall be those central banks or monetary authorities that are eligible to participate in and which sign this Agreement not later than three months from the date this Agreement has been signed by the duly authorized representatives of five such central banks or authorities. Each shall become a participant on the date this Agreement enters into force.
SECTION 3- Other participants
A central bank or monetary authority that is eligible to participate and is not an original participant may apply to the Board of Directors to become a participant and be admitted as a participant if the Board so decides by a two-third vote of all the Directors and upon such central bank or monetary authority signing this Agreement and accepting the rules, regulations and decisions of the Board of Directors. The Chairman of the Board shall determine the date on which the payments and transfers with respect to such a participant shall be included in the clearing facility.