European Payments Union

The European Payments Union (EPU ) was an alliance of several European countries to promote multilateral trade and payments in Western Europe. The aim of the retroactive to July 1, 1950 was established in September 1950, Union was the free convertibility of all currencies involved without having to resort to the then scarce dollars. This was achieved through a credit mechanism and multilateral clearing. The responsibility for clearing payments of the Bank for International Settlements was transferred. After 14 Western European countries in 1958 had declared the convertibility of their currencies, the EPU broke up on December 29. Was succeeded by the European Monetary Agreement.