The Asian Clearing Union Will Launch a New Cross - border Financial Settlement System

The latest news shows that the Asian Clearing Union (ACU) - a regional multilateral trade clearing institution composed of nine Asian countries - plans to launch a new cross - border financial settlement system in June this year. This system is regarded as an alternative to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system.

The Asian Clearing Union was established in 1974. Its member states include Iran, India, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, Sri Lanka, and Myanmar. At the 51st summit recently held in Tehran, the capital of Iran, member states expressed their willingness to launch a bank information system that can compete with the SWIFT system.

Karimi, the vice - governor of the Central Bank of Iran, said that the new settlement system can completely replace the SWIFT system and help promote the global de - dollarization process. This system will be mainly used by the member states of the Asian Clearing Union, but other countries can also apply to join. In addition, the rotating chairperson of the Asian Clearing Union also said that the organization will seek to admit new members and assist them in de - dollarization.

The launch of this new settlement system reflects the strong willingness of the Asian Clearing Union to reduce the weight of the US dollar in global trade. This willingness has become more prominent against the backdrop of the US withdrawal from the Iran nuclear deal and the implementation of economic sanctions against Iran, as well as the implementation of financial sanctions against Russia after the Russia - Ukraine conflict.

Against such a backdrop, the global de - dollarization process is accelerating. Many developing countries have started to look for alternatives to the US dollar. Novak, the vice - premier of Russia, said that Russia and Iran are exploring the use of the currencies of other countries for settlement, including the Chinese yuan.

The launch of this new cross - border financial settlement system and the acceleration of the global de - dollarization process mark that the status of the US dollar as the dominant global currency may be facing challenges.