Mechanizm Kursów Walutowych (ERM)
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The European Exchange Rate (and intervention) Mechanism, abbreviated as ERM, was set up to help stabilize exchange rates and help lead Europe to become an area of monetary stability before the introduction of the single currency, the euro.
After the euro’s introduction on 1 January 1999, the original ERM was replaced by ERM II (exchange rate mechanism II) at the start of Stage Three of Economic and Monetary Union (EMU). This began with the irrevocable (not able to be changed) fixing of exchange rates, the transfer of monetary competence to the European Central Bank, and the introduction of the euro as the single currency. ERM II provides a framework for exchange rate policy co-operation between the Eurosystem (the central banking system of the euro area) and European Union Member States that are preparing to adopt the euro.