Exchange Rate Mechanism

Meaning of Exchange Rate Mechanism

In the context of Europe, and according to A Dictionary of Law, the following is a definition of Exchange Rate Mechanism : (ERM)

A component of the *European Monetary System under which the central banks of participating countries could not allow their currencies to fluctuate more than a certain percentage above (the ceiling rate) or below (minimum rate) a central rate, which was set in *ECUs. The system was intended as a precursor to full *European Monetary Union (EMU). The ERM linked currencies with the aim of ensuring their stability. From 1999, states wishing to participate join ERM II, which is based on the euro and supervised by the *European Central Bank.

Hierarchical Display of Exchange-rate mechanism

Finance > Monetary relations

Meaning of Exchange-rate mechanism

Overview and more information about Exchange-rate mechanism

For a more comprehensive understanding of Exchange-rate mechanism, see in the general part of the online platform.[rtbs name=”xxx-xxx”]

Resources

Translation of Exchange-rate mechanism

• Spanish: Mecanismo de tipos de cambio
• French: Mécanisme de taux de change
• German: Wechselkursmechanismus
• Italian: Meccanismo di cambio
• Portuguese: Mecanismo de taxas de câmbio
• Polish: Mechanizm kursów walutowych

Thesaurus of Exchange-rate mechanism

Finance > Monetary relations > Exchange-rate mechanism

See also

• Cereal product
• Malt
• Cereal flakes
• Bread
• Cereal flour
• Meal
• Groat
• Pasta