Exchange Rate Mechanism - ERM
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Definition of 'Exchange Rate Mechanism - ERM'
An exchange rate mechanism is based on the concept of fixed currency exchange rate margins. However, there is variability of the currency exchange rates within the confines of the upper and lower end of the margins. This currency exchange rate mechanism is also commonly called a semi-pegged currency system.
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Investopedia explains 'Exchange Rate Mechanism - ERM'
The most notable exchange rate mechanism was the one that was in effect in Europe. The goal of the European Exchage Rate Mechanism was to reduce exchange rate variability and achieve monetary stability in Europe prior to the introduction of the single currency - the euro - on January 1, 1999.
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Search results for 'Exchange Rate Mechanism (ERM)'
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http://financialedge.investopedia.com/financial-edge/0911/Why-Britain-Withdrew-From-The-ERM.aspx
... The country was forced to withdraw the pound sterling from the European Exchange
Rate Mechanism (ERM) after the currency strayed too far from the exchange rate ...
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http://www.investopedia.com/articles/forex/12/currency-all-time-highs-lows.asp
... The European exchange rate mechanism (ERM) was first introduced early in 1979 as
part of a long-term plan that ultimately became the euro, but the UK did not ...
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http://www.investopedia.com/ask/answers/08/george-soros-bank-of-england.asp
... They didn't actually break it, but they forced the British government to
pull it from the European Exchange Rate Mechanism (ERM). ...
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http://www.investopedia.com/articles/forex/11/currency-meltdowns-speculative-raids.asp
... George Soros made US$1 billion by shorting the pound prior to the British government
being forced to withdraw from the European Exchange Rate Mechanism (ERM). ...
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http://www.investopedia.com/articles/forex/08/greatest-currency-trades.asp
... rates and equally high inflation, but it demanded a fixed rate of 2.7 marks to a
pound as a condition of entering the European Exchange Rate Mechanism (ERM). ...
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