Exchange Rate Mechanism

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Exchange Rate Mechanism

n
1. (Economics) the mechanism formerly used in the European Monetary System in which participating governments committed themselves to maintain the values of their currencies in relation to the ECU. Abbreviation: ERM
2. (Economics) Also: Exchange Rate Mechanism II the mechanism used to stabilize the currencies of European Union states that have not adopted the euro but wish to maintain the value of their currency in relation to it. Abbreviation: ERM II
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014
Translations

Exchange Rate Mechanism

nmeccanismo dei tassi di cambi
Collins Italian Dictionary 1st Edition © HarperCollins Publishers 1995
References in periodicals archive ?
8.2 Liabilities arising from the credit facility under ERM II 0 0
Romania has also expressed interest in joining ERM II but there is currently no formal timetable in place.
An EU council statement said, 'Once they have provided a positive assessment, a decision will be taken by the ERM II parties on the formal application of the Bulgarian authorities for ERM II participation.
The ERM II requires countries to maintain at most a 15% fluctuation band around an agreed central exchange rate between the euro and the country's currency.
Immediately after coming to power at the end of July 2009, the Bulgarian Government announced that entering the Exchange Rate Mechanism II (ERM II) was a major priority.
To adopt the euro, they still have to participate in ERM II for at least 2 yr before a convergence assessment for EMU membership can be made.
Thus, the economic environment might not only influence the timing of entry and the duration of participation in the ERM II but also the broader issue of fast or slow entry.
The exchange rate mechanism criterion requires participation in ERM II within the normal fluctuation bands for two years.
Bulgaria has fulfilled practically all commitments undertaken a year ago to enter ERM II, also known as the Eurozone waiting room.
In a report, the central bank said that six of the eight nations that were to adopt the euro, Bulgaria, the Czech Republic, Hungary, Poland, Romania and Sweden, have not yet joined the exchange rate mechanism II (ERM II) for more than two years, which is a prerequisite for membership.
Under the Exchange Rate Mechanism, or ERM II, countries such as Bulgaria, Poland and Hungary, which have set themselves targets for entering the single currency, must maintain their currencies at a rate of 15% above or below the euro for two years before being allowed to join.
Countries with high public debt and with a currency board arrangement will try to join the euro area quickly, because ERM II (Exchange Rate Mechanism) participation will lead to a welfare loss.