grid

A range used as part of the European Exchange Rate Mechanism system. Particularly when Europe was getting ready to introduce the Euro, one of the techniques they used was to introduce the grid, a fixed range between which exchange rates could fluctuate. Bilateral rates were determined, and most currencies had to be kept within a 2.25% margin of these rates. The exception was the Italian lira, which was given a 6% margin. These margins were later increased.

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