ERM — Exchange Rate Mechanism

The Exchange Rate Mechanism (ERM) | S-cool, the revision website

ERM - Exchange Rate Mechanism

The ERM was a fixed, but adjustable, exchange rate system for the countries of the European Union (EU) that started in 1979. Although there were the standard economic reasons for the new system (stability, discipline, etc.

), it was also a precursor to European Monetary Union (EMU), the final stage of which was the creation of the euro, the single currency for the EU. It was felt that the single market of the EU would not be complete without a single currency as well.

The single market came into force on the 1st January 1993, with the single currency starting exactly six years later.

The ERM was similar to the Bretton Woods system, except that it was not any currency or gold. The currencies were pegged to a central unit known as the ECU that was a weighted average of the participating countries in 1979.

As with the Bretton Woods' system, where all currencies were measured against the dollar, even though gold was the actual basis of the system, the German mark soon became the currency against which other currencies were quoted (although the mark was not the basis of the system).

the Bretton Woods system, currencies were allowed to make small adjustments around their entry rate (±2¼%) and realignments were allowed if the entry rate was obviously not right. This happened quite often to start with, but after the first few years the currencies had found their correct levels and realignments were more rare.

The pound joined in October 1990. There was a lot of political pressure to join, with the completion of the single market over the horizon.

In hindsight it was the wrong time (as the UK entered a recession) and at the wrong rate (£1 = 2.95DM was too high).

The pound was allowed larger band's (±6%), but by the summer of 1992 the pound was already hovering around the bottom band (£1 = 2.78DM).

The rules of the ERM stated that all members had to help struggling currencies stay within the permitted bands. This meant buying pounds or (in the case of non-UK countries) cutting interest rates to make the pound more attractive to investors and speculators. In practice, help was minimal.

There was no point buying pounds when the effect would be small compared with the might of global money flows. Also, Germany was in the process of reunification, and the resulting increase in the money supply needed higher interest rates.

In fact, it was because Germany's interest rates were relatively high over the period 1990-92 that the UK had to keep their interest rate higher than they would have d given that the UK was in the depths of a recession.

The pressure was too much. Speculators continually sold the pound in September and the only buyer was the UK government! On the 16th September 1992, the government lost £7 billion buying pounds. They even raised interest rates by 5% in one day (from 10% to 15%).

This was taken as a sign of desperation and the speculators kept selling pounds. They knew the pound was only going one way. The Chancellor announced the UK's suspension of their membership of the ERM that evening.

The pound fell by 15% instantly and has been floating ever since.

Other countries suffered as well. The bands were widened to ±15%. These bands were so wide that the ERM was barely an exchange rate system any more. The experience of the ERM was similar in some respects to that of the Bretton Woods system.

Whilst frequent realignments would disrupt the stability on which the system was based, too little realignment puts pressure on countries not to realign however bad the problems are. There were no realignments between 1987 and 1992.

The pound should probably have been realigned earlier in 1992, but membership of the ERM was the foundation stone around which the rest of government macroeconomic policy was built. Realignment was seen as failure just as rising inflation would be today.

As John Major found out when he lost the 1997 General Election, even though devaluation the ERM helped the economy recover, his reputation for economic management was in tatters.

Many voters in opinion polls cited the ERM fiasco as the reason for voting the government out.

What made it worse was the fact that the recovery of the economy after the pound fell the ERM suggested that government policy of being in the ERM was simply wrong.

Advantages and disadvantages of fixed and floating systems

As you have seen, each system has its good and bad points. We shall summarise them below, starting with fixed exchange rate systems.

The advantages of a fixed exchange rate system

Stability

Some economists would argue that this is the most significant advantage.

If exchange rates are stable over a given period of time, exporting firms will be able to plan ahead without worrying about huge swings in the value of the pound eliminating their profit margin.

This will encourage more investment and trade between countries, both of which are important if economies are to grow in the long term.

Discipline

If a country is part of an exchange rate system, they cannot devalue their currency at the first sign of trouble (i.e. a large current account deficit). They have to try and cure the fundamental problem by, for example, improving the competitiveness of their exporters through increased productivity and improved quality.

One can also argue that fixed exchange rate systems discipline countries into keeping inflation down. Again, there is no option to devalue if increasing inflation leads to reduced competitiveness. This was the case with the UK in the ERM. Their actions were effectively dictated by the actions of the strongest member of the system, Germany.

They were notoriously strict on inflation, perhaps keeping interest rates higher than they needed to be. The UK was forced to follow suit and keep interest rates relatively high to keep the pound within the ERM. The system almost forced the UK to keep inflation down. Others would argue that the ERM simply forced the UK to stay in a recession.

Anyone can keep inflation low by having a recession!

Avoid speculation?

Theoretically, fixed exchange rates should eliminate speculation because there is no point buying and selling currencies that will not change in value. In the real world, this is not always the case. The story of the pound falling the ERM is a classic example where this theory went a bit wrong!

Having said that, in the run up to the introduction of the euro (a totally fixed exchange rate system!) the rates were fixed six months before the start date of the 1st January 1999 and lots of speculation against these rates was predicted.

In this case, it simply did not happen. Speculators believed the politicians when they said that these rates were forever, and so did not see the point in buying or selling the currencies involved.

Of course, the euro was sold after its introduction, but that is a different story (see the next Learn-It).

The lesson, therefore, is that systems that are credible will experience less speculation. Systems, or members within systems, that do not inspire confidence may well have to put up with lots of speculative buying and selling.

The disadvantages of a fixed exchange rate system

The loss of monetary policy

As the UK government found when they were part of the ERM, a commitment to a fixed exchange rate means that you lose control over all other instruments of monetary policy.

Although the government pretended that UK interest rate decisions we still their own (and technically they were) any movement of the German interest rate was usually quickly followed by a similar change in the UK.

Today the Monetary Policy Committee (MPC) can set interest rates at whatever level they want, but they cannot control the value of the pound at the same time. Controlling one of these two instruments means a loss of control of the other.

The need for a large pool of reserves

To maintain the pound's value within the ERM, the government had to have a large pool of foreign reserves with which to buy the pound when it fell to the floor of the bottom band.

Apart from being expensive in itself, some countries may find it hard to get their hands on sufficient stocks of reserves to support their currency.

One of the main jobs of the IMF in the Bretton Woods system was to help poor countries in times of trouble and lend them reserves when they were short.

Problems of uncompetitiveness

With a freely floating currency, a deteriorating trade situation should automatically cause the pound to fall (speculators permitting!), which, in turn, would improve the competitiveness of British exporters and improve the trade balance.

Economies stuck in a fixed exchange rate system with a deteriorating trade balance may feel that they joined the system at too high an exchange rate.

Although they may be allowed to devalue eventually, the exchange rate may be at the wrong rate for significant periods of time. This can cause permanent job losses and recession.

Some economists feel that the recession of 1990-92 in the UK was prolonged due to membership of the ERM.

Advantages of a floating exchange rate system

Theoretical elimination of trade imbalances

As we have stated before, floating exchange rates should adjust automatically to trade imbalances, which, in turn, will eliminate the trade imbalance. Of course, it has also been noted that this does not always work in the real world because so few currency transactions that take place are for trade.

No need for reserves?

On the whole, foreign reserves are used to help maintain a currency's position within a fixed exchange rate. If a currency is freely floating, then there is no need to use reserves to affect its value. In the real world, governments will always have some reserves, in case of a crisis in the balance of payments, or if they feel that their currency is getting a bit too high or too low.

More freedom over domestic policy

As was stated above, if the government is not controlling their exchange rate, then they can control their rate of interest. The evidence of the past five years suggests that, although exporters suffer with a strong pound, the economy as a whole is best served when the authorities can control domestic monetary policy.

The disadvantages of a floating exchange rate system

Speculation

Again, there are two ways of looking at this. You could argue that with floating exchange rates, speculation is less ly because an exchange rate can move freely up or down, so it is more ly to be at its true level.

But the very fact that it does move up and down easily means it can move a long way if speculators think that it is at the wrong level.

The quick rise in the value of the pound in the second half of 1996 showed that big swings in currencies do not just happen when speculators force them fixed exchange rate systems.

Uncertainty

The biggest advantage of fixed exchange rate systems was their stability and certainty. This tended to increase investment and trade, both good things.

The biggest disadvantage of floating exchange rate systems is their uncertainty, reducing the rate at which investment and trade increase.

Firms often use the currency markets to hedge against large fluctuations in the exchange rate, which helps to a certain extent, but there is still felt to be too much uncertainty.

Источник: https://s-cool.co.uk/a-level/economics/exchange-rates/revise-it/the-exchange-rate-mechanism-erm

Экономический словарь — значение слова Exchange Rate Mechanism (erm) (механизм Валютных Курсов (мвк))

ERM - Exchange Rate Mechanism

См.: European Monetary System (Европейская валютная система).

Смотреть значение Exchange Rate Mechanism (erm) (механизм Валютных Курсов (мвк)) в других словарях

Механизм — механизма, мн. нет, м. (ср. механизм 1) (филос.). Философское направление, сводящее всё многообразие бытия к простым законам механики.
Толковый словарь Ушакова

Механизм — -а; м. [от греч. mēchanē — машина, орудие]1. Совокупность подвижно соединённых частей, совершающих под действием приложенных сил заданные движения; устройство машины, прибора,……..

Толковый словарь Кузнецова

Бюллетень Курсов Иностранной Валюты — — издаваемый Центральным банком Российской Федерации официальный документ, содержащий сведения о курсе иностранных валют по отношению к рублю. Данные, публикуемые……..
Юридический словарь

Денежный Механизм — — экономический инструмент, посредством которого изменения в денежной массе влияют на остальную экономику.
Юридический словарь

Индекс Курсов, Котировки — — способ определения тенденций изменения цен на ценные бумаги: средний показатель курсов важнейших акций на бирже, рассчитываемый по курсам наиболее крупных……..
Юридический словарь

Кредитньш Механизм — — составной элемент хозяйственного механизма, включающий принципы кредитования, кредитное планирование и управление кредитом, условия и методы банковского……..
Юридический словарь

Механизм Государства — — совокупность всех структур государства, реализующих его задачи и функции. Через М.г. осуществляется систематическое и непрерывное управляющее воздействие на общество,……..
Юридический словарь

Механизм Действия Конституции — — комплекс мер (средств) юридического, организационного, материально-финансового, социально-психологического и иного характера, направленных на создание условий фактического……..
Юридический словарь

Механизм Денежной Трансмиссии — — механизм воздействия изменения предложения денег на решения субъектов хозяйства, предприятий относительно объемов расходов на товары и услуги.
Юридический словарь

Механизм Добровольного Увольнения — — уход работника с одного места работы и поиск другого с целью повышения уровня оплаты труда или улучшения его условий.
Юридический словарь

Механизм Преступления — совокупность системообразующих элементов преступления: предмет посягательства, мотивы, цели и способы совершения преступления, это динамическая структура преступного деяния.
Юридический словарь

Механизм Преступного Поведения — — способ взаимодействия личности и среды, результатом которого является преступление. М.п.п. включает свойства личности и мотивацию поведения лица, совершающего преступления,……..
Юридический словарь

Механизм Следообразования — — система компонентов процесса образования следоотображения, следообразующий объект, процесс его воздействия на вещество следа.
Юридический словарь

Механизм Устных Контактов — — форма общения работников с предпринимателями через профсоюз.
Юридический словарь

Механизм Формирования Личности Преступника — — способ взаимодействия свойств личности и элементов среды, результатом которого являются негативные изменения данной личности, имеющих уголовно-правовое значение.
Юридический словарь

Множественность Валютных Курсов — — дифференциация валютных курсов по различным видам операций с валютой: дифференциальный подход в пересчете национальной валюты в иностранную, практикуемый в странах……..
Юридический словарь

Расхождение Курсов Акций — — в анализе состояния фондового рынка: расхождение между пределами колебания курсов акций в течение двух дней подряд, то есть несовпадение, расхождение двух диапазонов……..
Юридический словарь

Риск Герстатт — Риск При Перекрестных Валютных Сделках (herstatt Risk (cross-currency Settlement Ris — риск, относящийся к взаиморасчетам по контрактам, связанным с покупкой иностранной валюты, когда одна из сторон выплачивает сумму в какой-либо валюте до получения оплаты……..
Юридический словарь

Рост Курсов — — повышение курсов на бирже, следующее за падением.
Юридический словарь

Система Обменных Курсов — — совокупность норм и правил, отражающих поведение центрального банка страны на внешнем валютном рынке. К числу основных правил данной системы относится поддержание……..
Юридический словарь

Таблица Обменных Курсов — — таблица, содержащая сведения о курсах обмена конвертируемых коммерческим банком валют для физических и юридических лиц.
Юридический словарь

Финансовый Механизм — — элемент всего хозяйственного механизма, совокупность финансовых инструментов, рычагов, форм и способов регулирования экономических процессов. Ф.м. включает в себя……..
Юридический словарь

Хозяйственный Механизм — — совокупность организационных структур и конкретных форм и методов управления, а т.ж. правовых норм, с помощью которых реализуются действующие в конкретных условиях……..
Юридический словарь

Целевые Зоны Валютных Курсов — — один из способов достижения валютной стабильности, заключающийся в установлении согласованных ориентиров валютных курсов стран, входящих в зону.
Юридический словарь

Чистое Плавание Валютных Курсов — — 1) система плавающих курсов, при которой власти не пытаются воздействовать на рыночный спрос и предложение валюты; 2) курсы валют, образующиеся на чисто рыночной основе……..
Юридический словарь

Гольдблатта Ренопрессорный Механизм — (Н. Goldblatt) механизм развития артериальной гипертензии, заключающийся в действии избытка ренина и ангиотензина, образующихся при сдавлении или сужении почечной артерии.
Большой медицинский словарь

Механизм Передачи Инфекции — совокупность трех фаз перемещения возбудителей инфекционной болезни от источника инфекции в восприимчивый организм человека или животного: а) выведение возбудителей……..
Большой медицинский словарь

Механизм Передачи Инфекции Воздушно-капельный — (син. М. п. и. респираторный) М. п. и., при котором возбудители локализуются в слизистой оболочке дыхательных путей, откуда поступают в воздушную среду (при кашле, чиханье……..
Большой медицинский словарь

Механизм Передачи Инфекции Контактно-бытовой — см. Механизм передачи инфекции контактный.
Большой медицинский словарь

Механизм Передачи Инфекции Контактный — (син. М. п. и. контактно-бытовой) М. п. и., при котором возбудители локализуются на коже и ее придатках, на слизистой оболочке глаз, полости рта, половых органов, на поверхности……..
Большой медицинский словарь

Посмотреть в Wikipedia статью для Exchange Rate Mechanism (erm) (механизм Валютных Курсов (мвк))

Источник: http://slovariki.org/ekonomiceskij-slovar/48833

Что такое механизм обменного курса (ERM)? 2020

ERM - Exchange Rate Mechanism

Механизмы обменного курса, кратко обозначенные ERM, представляют собой системы, предназначенные для управления обменным курсом валюты по отношению к другим валютам.

В крайних случаях плавающие ERM позволяют обменять валюту без вмешательства со стороны правительств и центральных банков, а фиксированные ERM включают любые меры, необходимые для поддержания ставок, установленных на определенную стоимость.

Управляемые ERM попадают где-то между этими двумя категориями, причем Европейский механизм обмена валют («ERM II») является самым популярным примером, который по-прежнему используется сегодня для стран, которые хотят присоединиться к валютным союзам Европы.

История ERM

Большинство валют исторически начиналось с фиксированных механизмов обменного курса, причем их цены устанавливались на товары, такие как золото.

Фактически доллар США официально был зафиксирован на ценах золота до октября 1976 года, когда правительство удалило ссылки на золото из официальных уставов.

Некоторые другие страны начали устанавливать свои валюты на сам доллар США, чтобы ограничить волатильность, в том числе крупнейший торговый партнер США — Китай, который до сих пор сохраняет некоторый уровень контроля.

К 1990-м годам многие страны приняли плавающие ERM, которые остались наиболее популярным вариантом для поддержания ликвидности и снижения экономических рисков.

Исключения из этого правила включают такие страны, как Венесуэла и Аргентина, а также страны, которые испытывают временные повышения в своих валютных оценках.

Например, Япония и Швейцария приняли полуограниченные ERM в ответ на Европейский финансовый кризис, что привело к резкому увеличению их стоимости.

Преимуществами фиксированной ERM были снижение неопределенности, связанной с колебаниями и потенциально ограниченным инфляционным давлением, но гибкие ERM, возможно, помогли улучшить темпы роста и освободили денежно-кредитную политику, чтобы сосредоточиться на внутренней экономике.

Как работают ERM

Активно управляемые механизмы обменного курса работают, устанавливая разумный диапазон торговли для валютного курса валюты, а затем применяя диапазон через вмешательства.

Например, Япония может установить верхнюю и нижнюю границу японской йены относительно доллара США. Если японская иена ценит выше этого уровня, Банк Японии может вмешаться, покупая большое количество долларов США и продавая японскую иену на рынок, чтобы снизить цену.

Другие инструменты, которые могут использоваться для защиты обменных курсов, включают тарифы и квоты, внутренние процентные ставки, денежную и фискальную политику или переход на плавучую ERM.

Поскольку центральные банки могут печатать валюты, большинство трейдеров соблюдают ограничения фиксированных или полуфиксированных ERM.

Есть некоторые известные случаи, когда эти фиксированные или полуфиксированные ERM не удается, хотя, в том числе знаменитый пробег Джорджа Соро в Банке Англии.

В этих случаях трейдеры могут использовать рычаги, чтобы делать огромные ставки против валюты, которые делают слишком дорогостоящие вмешательства центральных банков, не вызывая значительную инфляцию.

ERM на практике

Самым популярным примером механизма обменного курса является механизм Европейской биржи, который был разработан для снижения вариабельности обменного курса и достижения денежной стабильности в Европе до введения евро с 1 января 2009 года. 1999. ERM была разработана для нормализации обменных курсов валют между этими странами, прежде чем они были интегрированы, чтобы избежать каких-либо серьезных проблем с поиском рынка.

В то время как оригинальная европейская ERM была распущена, европейская ERM II была принята 1 мая 2004 года, чтобы помочь новым членам еврозоны лучше интегрироваться.

В число стран входят Эстония, Литва, Словения, Кипр, Латвия и Словакия.

Швеции было разрешено держаться подальше от ERM, в то время как Швейцария всегда плавала полностью независимо, пока кризис задолженности в еврозоне не привел к минимуму 1. 20 привязок к евро.

Ключевые моменты для запоминания

  • ERM — это инструменты, используемые для управления стоимостью валюты страны по отношению к другим валютам на мировых рынках.
  • В большинстве развитых стран существуют гибкие ERM, в то время как страны с формирующейся рыночной экономикой, как правило, имеют фиксированную политику ERM, которая помогает обеспечить стабильность.
  • Существует множество способов повлиять на обменные курсы, включая операции на открытом рынке, тарифы, квоты, процентные ставки и денежно-кредитную политику.

Источник: https://ru.routestofinance.com/what-is-an-exchange-rate-mechanism

An Introduction to the European Exchange Rate Mechanism (ERM)

ERM - Exchange Rate Mechanism

The European Exchange Rate Mechanism (ERM) was a financial system originally introduced by the European Economic Community (EEC) in March 1979.

An integral part of the European Monetary System (EMS) founded around the same time, the mechanism’s primary mission was to promote financial stability across Europe, as well as align the currencies of the participating countries in preparation for the introduction of a single European currency further down the line.

This founding mission was ostensibly achieved — and the system thus rendered obsolete — by the time the Euro was rolled out around the turn of the millennium; nevertheless, the ERM had a profound effect on the global currency market of its era and its offshoots continue to play a role in the organisation of European financial politics to this day.

For this reason, it’s a subject that traders (particularly those who favour European instruments) would benefit from familiarising themselves with — so let’s start with the very basics:

What Does an Exchange Rate Mechanism Do?

Exchange rate mechanisms are used by central banks to influence the price of their respective national currencies within the financial markets in a manner that supports their economic goals.

Banks are only able to employ these types of mechanisms if their monetary system allows them to exert control over the currency in question. In practice, this is either achieved via establishing a fixed exchange rate or making sure their floating rate is nevertheless closely tied to a specific ‘peg’ instrument — usually another major currency or the price of a tangible asset such as gold.

These exchange rate mechanisms — sometimes known as ‘semi-pegged’ currency systems — grant the bank the ability to manipulate the pegged rate within a certain value range when needed, for example to ease trade conditions or influence the rate of inflation.

Banks commonly choose to set an upper and lower bound interval on their exchange rates in order to let the currency vary a little in response to supply/demand forces and other market events — as is natural and often desirable — without halting liquidity or rendering it vulnerable to excessive risk.

Further reading: https://www.thebalance.com/what-is-an-exchange-rate-mechanism-erm-1979093

A Brief Look at the European Currency Unit (or, the ‘Proto-Euro’)

When the ERM was brought in during the early months of 1979, it sought to normalise the exchange rates between European countries to minimise any problems that may arise from price discovery upon their absorption into the future Eurozone.

This was achieved through the establishment of the European Currency Unit (ECU), a standardised ‘unit of account’ that was measured as a weighted average of each participating currency — in a sense acting as a Frankenstein-esque, prototype version of the Euro. This weighted figure enabled each individual country to manipulate their exchange rate with other countries worldwide, while concurrently allowing for a central exchange rate to be put in place for each currency within Europe.

The mechanism worked by first calculating the equivalent value of its participating nations’ currencies in terms of ECUs. These bilateral rates were then expressed in a ‘parity grid’ and day-to-day fluctuations were closely monitored so they could only move within a 2.25% margin either side of the stipulated rate to prevent unwanted market volatility.

Exceptions to these restrictions included the British pound, Spanish pesata, Italian lira and Portuguese escudo, all of which were capable of fluctuating by a comparatively large margin of 6%. Further fluctuations either side of these constraints were prevented by loan arrangements or other determined intervention by the relevant financial institutions.

Contemporary Criticism of the ECU

The British Chancellor at the time of the ERM’s development, Labour’s Denis Healey, refused to let the UK join the ECU system; among other reasons, he posited that it gave Germany an unfair advantage by shielding the Deutschemark from appreciation at the expense of smaller economies.

This proved to be a controversial decision within many branches of government, especially given that Healey’s successor, the Conservative Geoffrey Howe — appointed only months later — was enthusiastically in favour of the European project; Britain would eventually join the system a decade later in 1990 at the behest of the equally pro-integration Chancellor John Major.

However, the UK’s involvement wasn’t to last, as it dramatically withdrew from the ERM treaty after less than two years in 1992 following a catastrophic crash in the price of the pound sterling — an infamous event now commonly referred to by economists as ‘Black Wednesday’.

Black Wednesday and Britain’s Withdrawal

Whilst the ERM had been seen to be successfully promoting economic stability throughout planned during much of the 1980s, by the turn of the 1990s the collective regulation and comparative weighting systems had begun to put serious strain on many of its member states.

The high German interest rates brought about by the country’s recent unification, as well as double deficits experienced by Britain and Italy — not to mention knock-on effects from the depreciation of the global reserve currency, the US dollar — ultimately ended up placing unfavourable economic conditions upon the UK in particular.

Tensions came to a peak when the UK, despite its best efforts — including an interest rate increase up to 15% and a massive buy-back initiative of the GBP across the global markets — failed to keep the pound sterling above the lower currency exchange limit required for inclusion in the ERM, prompting its abrupt departure from the mechanism on the evening of 16th September 1992.

Infamously, Hungarian currency investor George Soros had noticed the myriad factors working against Britain and began building up a considerable short sale portfolio of pound sterling in the months leading up to the crash, which he began rapidly selling off the day before Britain left the ERM.

He earned more than $1bn from this move — the most profitable forex trade ever, equivalent to £12 for each man, woman and child in Britain at that time — and was given the nickname ‘the man who broke the Bank of England’ by the media, a colloquial title he retains to this day!

Further reading: https://www.ig.com/uk/news-and-trade-ideas/forex-news/black-wednesday-explained-181217

ERM II and the Eurozone

The ERM in its original form was dissolved on 31st December 1998 in preparation for the Euro’s introduction on 1st January 1999. The exchange rates of its member nations were all frozen and the Euro was brought in at a value identical to where the weighted ECU left off as the new year rolled in — beginning at one Euro to 1.1743 US dollars.

Having fulfilled its function, the original ERM was dissolved; however, a successor known simply as the ERM II was soon brought in to foster alignment between the Euro and other EU member states that hadn’t adopted the single currency, a role it continues to play today.

The ERM II also now works as a sort of ‘holding area’ for future non-EU countries for a period of at least two years prior to their integration into the Eurozone, where they are subject to a number of financial regulations designed to ease their transition and facilitate convergence.

Countries typically agree upon a central exchange rate between their own currency and the Euro, pledging to keep their own rate within 15% of this figure (via intervention from both the European Central Bank (ECB) and the nation’s own central bank where required). Former members of the ERM II include Greece and Lithuania, while the only currently participating currency is the Danish kroner, which the mechanism allows to fluctuate within a band of ±2.25%.

Further reading: https://ec.europa.eu/info/business-economy-euro/euro-area/introducing-euro/adoption-fixed-euro-conversion-rate/erm-ii-eus-exchange-rate-mechanism_en

«,»author»:»KVB PRIME»,»date_published»:»2020-03-19T13:43:39.536Z»,»lead_image_url»:»https://miro.medium.com/max/1200/1*10YsY58-9oL6hnEd54IqAA.jpeg»,»dek»:null,»next_page_url»:null,»url»:»https://kvbprime.medium.com/an-introduction-to-the-european-exchange-rate-mechanism-erm-2c6ed6c886ef»,»domain»:»kvbprime.medium.com»,»excerpt»:»The European Exchange Rate Mechanism (ERM) was a financial system originally introduced by the European Economic Community (EEC) in March…»,»word_count»:1219,»direction»:»ltr»,»total_pages»:1,»rendered_pages»:1}

Источник: https://medium.com/@kvbprime/an-introduction-to-the-european-exchange-rate-mechanism-erm-2c6ed6c886ef

Все термины
Добавить комментарий

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: