The European Exchange Rate Mechanism (ERM) was a system introduced by the European Community in March 1979, as part of the European Monetary System (EMS), to reduce exchange rate variability and achieve monetary stability in Europe, in preparation for Economic and Monetary Union and the introduction of a single currency, the euro, which took place on 1 January 1999.
After the adoption of the euro, policy changed to linking currencies of countries outside the Eurozone to the euro (having the common currency as a central point). The goal was to improve stability of those currencies, as well as to gain an evaluation mechanism for potential Eurozone members. This mechanism is known as ERM2.
Read more about European Exchange Rate Mechanism: Intent and Operation of The ERM, Irish Pound Breaks Parity With Pound Sterling, Pound Sterling's Forced Withdrawal From The ERM, Increase of Margins, Replacement With The Euro and ERM II, Current Status of The ERM II, Exchange Rate Bands
Famous quotes containing the words european, exchange, rate and/or mechanism:
“Long accustomed to the use of European manufactures, [the Cherokee Indians] are as incapable of returning to their habits of skins and furs as we are, and find their wants the less tolerable as they are occasioned by a war [the American Revolution] the event of which is scarcely interesting to them.”
—Thomas Jefferson (1743–1826)
“We never exchange more than three words with a Friend in our lives on that level to which our thoughts and feelings almost habitually rise.”
—Henry David Thoreau (1817–1862)
““Terence, this is stupid stuff:
You eat your victuals fast enough;
There can’t be much amiss, ‘tis clear,
To see the rate you drink your beer.”
—A.E. (Alfred Edward)
“Life is an offensive, directed against the repetitious mechanism of the Universe.”
—Alfred North Whitehead (1861–1947)