Exchange Rate Mechanism

Exchange Rate Mechanism definition - finance
An agreement among most of the members of the European Economic Community to maintain relatively fixed currency rates by limiting movements of the currency to a narrow band of between plus/minus 2.25 percent from an agreed upon relationship between the values of the currencies. The ERM was effective in the early 1990s and since has been replaced by the euro.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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