European exchange rate mechanism

(redirected from Exchange Rate Mechanism II)
Also found in: Dictionary, Acronyms.

European exchange rate mechanism (ERM)

The system that countries in the European Union once used to pay exchange rates within bands around an ERM central value.
References in periodicals archive ?
Bulgaria is looking to join the Euro, Europe's single currency, in 2009 or 2010, after the obligatory two years it would have to spend in the Exchange Rate Mechanism II (ERM II) 'waiting room' following the country's planned accession to the EU in January 2007.
A smooth and balanced process towards the early entry into Exchange Rate Mechanism II (ERM II) and the adoption of the euro, at minimal cost and disruption, is at the heart of monetary policy as well as of other macroeconomic policies, not only in Slovenia but as well in many other accession countries.
I believe we have a realistic chance to apply" to be accepted into the single currency area's Exchange Rate Mechanism II (ERM II), he added.
And the loss of monetary policy independence that would come from joining the Exchange Rate Mechanism II (ERM II) would further enhance the relative importance of other macro-economic policies, such as fiscal and incomes policies.