Himalayan News Service

Mumbai, May 15:

Financial relations between India and Pakistan are set to get a major boost with a rare visit of Reserve Bank of India (RBI) governor Y V Reddy to the country next week.

Reddy will leave for Pakistan today for a three-day long official visit to take part in the annual meeting of the Asian Clearing Union(ACU) to be held in Lahore, said a RBI spokesperson here.

“The visit of a RBI governor to Pakistan comes after a very long time. At least in the last 10 years no RBI chief had been to Pakistan on an official visit,” the spokesperson said.

“The main objective of the visit is to participate in the meeting of the Asian Clearing Union. The meeting will be attended by central bank governors of other Asian countries,” added the spokesperson.

The Asian Clearing Union (ACU) facilitates payments among member countries for eligible transactions, thereby economising on the use of foreign exchange reserves and transfer costs, as well as promoting trade among the participating countries.

The union also seeks to boost monetary cooperation and closer banking systems relations among the participating countries.

“Reddy is also likely to address a gathering of Pakistani bankers on the invitation of the State Bank of Pakistan (SBP),” the country’s central bank, said the spokesperson.