Definition of exchange rate mechanism in English:

exchange rate mechanism

Syllabification: ex·change rate mech·an·ism
(abbreviation: ERM)
An arrangement within the European Monetary System that allows the value of participating currencies to fluctuate to a defined degree in relation to each other so as to control exchange rates. Each currency is given a rate of exchange with the euro, from which it is allowed to fluctuate by no more than a specified amount; if it moves beyond this the government in question must alter its economic policies or reset the currency’s rate with the euro.

Get more from Oxford Dictionaries

Subscribe to remove ads and access premium resources

Word of the day meretricious
Pronunciation: merəˈtriSHəs
adjective
apparently attractive but having in reality no value...