European exchange rate mechanism


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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 ?
Soros used Quantum Fund in 1992 to bet successfully that sterling was overvalued against the Deutsche Mark, forcing then-Prime Minister John Major to pull the pound out of the European Exchange Rate Mechanism (ERM).
Oh by the way it was called Black Wednesday and it caused Britain to withdraw from the European Exchange Rate Mechanism at a cost of PS3.
We should remember the price that a previous government paid for speculation against sterling when we were ejected from the European Exchange Rate Mechanism.
Bulgaria will join the enter the European Exchange Rate Mechanism (ERM II), commonly known as the Euro Zone waiting room, when the socialists have stayed out of government long enough, according to Finance Minister Simeon Djankov.
The reaction of several Tory councillors to news that Birmingham City Council might after all not spend millions of pounds setting up a municipal bank had shades of Norman Lamont singing in the bath when Britain crashed out of the European Exchange Rate Mechanism.
This revaluation, justified on the basis of "ongoing improvements in Slovakia's economic fundamentals," concerned the currency's reference rate in the European Exchange Rate Mechanism (ERM II), which represents the antechamber to accession to the single currency for applicant countries (see Europolitics 3540 and 3542).
Sterling, which has strengthened in the face of weaker growth expectations in the United States, was last at the two dollars level just before it was ejected from the European Exchange Rate Mechanism in 1992.
He was Lamont's top adviser as Britain crashed out of the European Exchange Rate Mechanism.
The country must have participated for at least two years in the European Exchange Rate Mechanism (ERM II) within the normal fluctuation margins, without any devaluation being required.
Surely his greatest shame was on Black Wednesday, when he presided over the collapse of the European Exchange rate mechanism which almost wrecked the British economy.
In mid-March, the drachma entered the European Exchange Rate Mechanism and, as a result of the agreement on the central rate, the currency was devalued by 12 per cent in foreign currency terms.
So if Cameron does now try to stay, the Government's small parliamentary majority could mean a more embattled administration as intra-Conservative tensions fester, in a way not dissimilar to the 1990s under the Government of John Major after Britain was ejected from the-then European Exchange Rate Mechanism (ERM) in 1992.

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