Definition of Exchange Rate Mechanism in English:

Exchange Rate Mechanism

Line breaks: 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.

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Word of the day setose
Pronunciation: ˈsēˌtōs
adjective
bearing bristles or setae; bristly