exchange rate mechanism


a method of stabilising exchange rates within the European Monetary System, where currencies could only move up or down within a narrow band (usually 2.25 per cent either way, but for certain currencies widened to 6 per cent) without involving a realignment of all the currencies in the system.

Use this term in a sentence

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
exchange rate index exchange rate regime