Exchange Rate Mechanism
- (ERM)Introduced as part of the European Monetary System in 1979, the ERM was the first stage of a plan for closer financial integration within the European Union. It was designed to minimise currency- exchange fluctuation among the countries which belonged to the system. Each participating country had an exchange rate against the European Currency Unit (the ECU), which was a basket of national currencies. Each currency was supposed to fluctuate within an agreed margin on either side of the central exchange rate. For several years, membership of theERMwas seen as a means of creating monetary stability among member states. Britain joined in October 1990, the pound being allowed to operate within a broad margin of 6 per cent. But after a period of unprecedented international currency speculation culminating in the events of Black Wednesday, it left on the 16 September 1992.
Glossary of UK Government and Politics . 2013.
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Exchange Rate Mechanism — (ERM) One of the components for the establishment of the single European currency. It provided a central exchange rate for national currencies against the European Currency Unit, thereby intending to stabilise exchange rates, encourage trade… … Law dictionary
Exchange Rate Mechanism — noun A former arrangement to regulate exchange rate fluctuations between participating currencies in the EMS by fixing their rates, and limiting fluctuation, against the ECU (abbrev ERM) • • • Main Entry: ↑exchange … Useful english dictionary
Exchange Rate Mechanism — (ERM) method for protection of a stable exchange rate, part of a monetary organization of the EEC that began working in 1999 … English contemporary dictionary
Exchange Rate Mechanism — ( ERM) The methodology by which members of the EMS maintain their currency exchange rates within an agreed upon range with respect to other member countries. Bloomberg Financial Dictionary * * * Exchange Rate Mechanism Exˈchange Rate ˌMechanism… … Financial and business terms
exchange rate mechanism — ex change rate .mechanism n [U] ERM a system for controlling the exchange rate between the money of one country and that of another … Dictionary of contemporary English
exchange rate mechanism — noun (U) a system for controlling the exchange rate between the money of one country and that of another; erm … Longman dictionary of contemporary English
exchange rate mechanism — /ɪks tʃeɪndʒ reɪt ˌmekənɪz(ə)m/ noun a method of stabilising exchange rates within the European Monetary System, where currencies could only move up or down within a narrow band (usually 2.25% either way, but for certain currencies widened to 6%) … Dictionary of banking and finance
exchange-rate mechanism — ➡ ERM. * * * … Universalium
Exchange Rate Mechanism — ERM See: European Monetary System … Accounting dictionary
Exchange Rate Mechanism — ERM See European Monetary System … Big dictionary of business and management