currency union formed by some of the members of the EEC in 1979 that continued, with changing membership, until replaced by the EMU and the euro in 1999.
An arrangement in the 1970s and 1980s where many European countries linked their currencies to prevent large fluctuations in value. It was one of several initiatives leading to the deployment of the Euro.
Established in 1979 by the European Economic Community (EEC-- q.v.), the EMS was created to stabilize currency values because the Bretton Woods system ( q.v.) proved not fully satisfactory. All European Union (EU-- q.v.) countries are EMS members. The EMS is to be succeeded by the European Monetary Union (EMU-- q.v.).
Convention by which most nations of the European Union (EU) linked their currencies to prevent large fluctuations relative to one another. It was organized in 1979 to stabilize foreign exchange and counter inflation among members. In 1994 the European Monetary Institute was created as a transitional step in establishing the European Central Bank (ECB) and a common currency. At the beginning of 1999, the same EU members adopted a single currency, the euro, for foreign exchange and electronic payments.
System established to encourage monetary stability in Europe, through the implementation of credit and exchange rate policies.
An agreement among members of the European Union to promote exchange rate stability.
An exchange rate system based on cooperation between European Union central banks.
Established in 1979, the EMS was the system by which Member States linked their currencies to prevent large fluctuations relative to one another with the aim of encouraging trade. However, the EMS collapsed in the early 1990s and monetary policy within the EU is now coordinated through "the European System of Central Banks (ESCB)" which involves the European Central Bank and national Central Banks working in partnership.
Established in 1979 to secure a zone of monetary stability in Western Europe, with the Exchange Rate Mechanism (ERM) and the European Currency Unit (ECU) as its core elements. In the 1980s it increasingly became seen as inadequate, and hence a first step towards Economic and Monetary Union (EMU).
A system designed to stabilize if not eliminate exchange risk between member states of the EMS as part of the economic convergence policy of the EU. It permits currencies to move in a measured fashion (divergence indicator) within agreed bands (the parity grid) with respect to the ECU and consequently with each other.
Established in 1979 with the goal of reducing monetary instability and inflation within the European Union. Some of the Member States have defined fluctuation margins in respect to one another's currencies, and these are monitored by an Exchange Rate Mechanism (ERM).
Means of stabilising exchange rates among members of European Union. See Snake and ERM..
Agreement between most members of the common market on how to organise their currencies.
An exchange arrangement formed in 1979 that involves the currencies of European Union member countries.
European terms European Union
An exchange rate mechanism established in 1979 to promote stability in the FX rates of members of the European Community. It consisted of two parts - 'parity grid' and 'divergence indicator'. All 12 members of the EC were members of the EMS and contributed gold and USD deposits to make up the reserves.
An exchange-rate system adopted by European Union members in an effort to move toward a unified European currency.
See on: Wikipedia Investopedia An agreement between member nations of the European Union to maintain an alignment between the exchange rates of their respective currencies.
There are three stages of monetary cooperation in the European Union.