European Exchange Rate Mechanism
Encyclopedia
The European Exchange Rate Mechanism, ERM, was a system introduced by the European Community in March 1979, as part of the European Monetary System
(EMS), to reduce exchange rate
variability and achieve monetary stability in Europe, in preparation for Economic and Monetary Union
and the introduction of a single currency
, the euro
, which took place on 1 January 1999. After the adoption of the euro, policy changed to linking currencies of countries outside the Eurozone to the euro (having the common currency as a central point). The goal was to improve stability of those currencies, as well as to gain an evaluation mechanism for potential Eurozone members. This mechanism is known as ERM2.
(ECU), the European unit of account, whose value was determined as a weighted average of the participating currencies.
A grid (known as the Parity Grid) of bilateral rates was calculated on the basis of these central rates expressed in ECUs, and currency fluctuations had to be contained within a margin of 2.25% on either side of the bilateral rates (with the exception of the Italian lira, which was allowed a margin of 6%). Determined intervention and loan arrangements protected the participating currencies from greater exchange rates fluctuations.
breaking parity with the pound sterling
in 1979. Shortly after the launch of the ERM, the pound sterling, which was not an ERM currency, appreciated against all ERM currencies. Continued parity between the Irish pound and the pound sterling would have taken the Irish pound outside its agreed band. Therefore, the Irish government
was required to break the parity of the Irish pound with the pound sterling to fulfil the ERM conditions.
came under major pressure from currency speculator
s, including George Soros
. The ensuing crash of 16 September 1992 was subsequently dubbed "Black Wednesday
". There has been some revision of attitude towards this event given the UK's strong economic performance after 1992, with some commentators dubbing it "White Wednesday". Some commentators, following Norman Tebbit
, took to referring to ERM as an "Eternal Recession Mechanism", after the UK fell into recession during the early 1990s. The UK spent over £6bn trying to keep the currency within the narrow limits with reports at the time widely noting that Soros's individual profit of £1bn equated to over 12 pounds sterling for each man, woman and child in Britain http://books.google.com/books?cd=1&id=js_OAAAAIAAJ&dq=soros+pound+man+woman+and+child+in+britain&q=+man+woman+and+child#search_anchorhttp://books.google.com/books?cd=2&id=3OZTqgObT5EC&dq=soros+pound+man+woman+and+child+in+britain&q=+man+woman+and+child+#search_anchorhttp://books.google.com/books?id=J7I26pZK8TUC&pg=PP1&dq=soros+pound+man+woman+and+child+in+britain&cd=3#v=onepage&q=%20man%20woman%20and%20child%20in%20britain&f=false and dubbing Soros as "the man who broke the Bank of England".
The Tory
government suffered badly as a result of Black Wednesday. The change of prime minister to John Major
following the resignation of Margaret Thatcher
in November 1990 had seen the Tories overhaul the Labour Party
in the opinion polls, having trailed them by a double-digit margin in most polls during 1990, and eventually manage to win the general election in April 1992
. However, within a few short months of Black Wednesday, opinion polls showed that the Tory lead had disappeared and Labour had a double-digit lead over the Tories in the opinion polls once more. Despite the strong economic recovery over the next few years, Tory support barely recovered and their 18-year tenure in government was ended in May 1997 by a Labour landslide
, followed by 13 years on the opposition benches.
and other currencies.
countries were frozen and the value of the euro, which then superseded the ECU at par, was thus established.
In 1999, ERM II replaced the original ERM. The Greek
and Danish currencies were part of the new mechanism, but when Greece joined the euro in 2001, the Danish krone
was left at that time as the only participant member. A currency in ERM II is allowed to float within a range of ±15% with respect to a central rate against the euro. In the case of the krone, Danmarks Nationalbank
keeps the exchange rate within the narrower range of ± 2.25% against the central rate of EUR 1 = DKK 7.460 38.
EU countries that have not adopted the euro are expected to participate for at least two years in the ERM II before joining the Eurozone
.
(NCBs) of the new member countries became party to the ERM II Central Bank Agreement. The national currencies themselves were to become part of the ERM II at dates to be agreed.
The Estonian kroon
, Lithuanian litas
, and Slovenian tolar
were included in the ERM II on 28 June 2004; the Cypriot pound
, the Latvian lats
and the Maltese lira
on 2 May 2005; the Slovak koruna
on 28 November 2005. The currencies of the three largest countries which joined the European Union
on 1 May 2004 (the Polish złoty, the Czech koruna
, and the Hungarian forint
) are expected to follow eventually.
Other countries to have since joined the eurozone
, and hence left ERM II, include Slovenia (1 January 2007), Cyprus (1 January 2008), Malta (1 January 2008), Slovakia (1 January 2009) and Estonia (1 January 2011).
The Hungarian Ministry of Finance said that Hungary originally wanted to adopt the euro in 2010, but this has been delayed. Experts say that the earliest date when Hungary will adopt the euro is 2015. Bulgaria wanted to apply for ERM II membership as soon as possible after the EU entry. In November 2009, Bulgaria confirmed that it planned apply for joining ERM II in early 2010, but was forced to delay its application for at least one year after updated figures put the budget deficit for 2009 at 3.7% of GDP, outside the Maastricht criteria. Romania plans to join ERM in 2010–2012.
Sweden is expected to participate in ERM II in order to meet the convergence criteria
required for switching currency, but has deliberately chosen to stay out of the mechanism so far. This choice is currently tolerated by the ECB
, but it has warned that such an option will not be permitted for newer union members.
The Swiss Franc had always floated independently until its currency appreciation became unsustainable during the Eurozone debt crisis, at which point it made a compromise to keep the exchange rate at a minimum of 1.20 francs to the euro, which does not constitute a peg. It is important to note that Switzerland is not officially a member of ERM II as it is not an EU member and expresses no ambitions to become an EU member.
, Slovenian tolar
, Cypriot pound
, Estonian kroon
, Maltese lira
and Slovak koruna
.
European Monetary System
There are three stages of monetary cooperation in the European Union.-Background:European currency exchange rate stability has been one of the most important objectives of European policy makers at least since the Second World War....
(EMS), to reduce exchange rate
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...
variability and achieve monetary stability in Europe, in preparation for Economic and Monetary Union
Economic and Monetary Union of the European Union
The Economic and Monetary Union is an umbrella term for the group of policies aimed at converging the economies of members of the European Union in three stages so as to allow them to adopt a single currency, the euro. As such, it is largely synonymous with the eurozone.All member states of the...
and the introduction of a single currency
Currency union
A currency union is where two or more states share the same currency, though without there necessarily having any further integration such as an Economic and Monetary Union, which has in addition a customs union and a single market.There are three types of currency unions:#Informal - unilateral...
, the euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
, which took place on 1 January 1999. After the adoption of the euro, policy changed to linking currencies of countries outside the Eurozone to the euro (having the common currency as a central point). The goal was to improve stability of those currencies, as well as to gain an evaluation mechanism for potential Eurozone members. This mechanism is known as ERM2.
Intent and operation of the ERM
The ERM is based on the concept of fixed currency exchange rate margins, but with exchange rates variable within those margins. This is also known as a semi-pegged system. Before the introduction of the euro, exchange rates were based on the European Currency UnitEuropean Currency Unit
The European Currency Unit was a basket of the currencies of the European Community member states, used as the unit of account of the European Community before being replaced by the euro on 1 January 1999, at parity. The ECU itself replaced the European Unit of Account, also at parity, on 13...
(ECU), the European unit of account, whose value was determined as a weighted average of the participating currencies.
A grid (known as the Parity Grid) of bilateral rates was calculated on the basis of these central rates expressed in ECUs, and currency fluctuations had to be contained within a margin of 2.25% on either side of the bilateral rates (with the exception of the Italian lira, which was allowed a margin of 6%). Determined intervention and loan arrangements protected the participating currencies from greater exchange rates fluctuations.
Irish pound breaks parity with pound sterling
Ireland's participation in ERM resulted in the Irish poundIrish pound
The Irish pound was the currency of Ireland until 2002. Its ISO 4217 code was IEP, and the usual notation was the prefix £...
breaking parity with the pound sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
in 1979. Shortly after the launch of the ERM, the pound sterling, which was not an ERM currency, appreciated against all ERM currencies. Continued parity between the Irish pound and the pound sterling would have taken the Irish pound outside its agreed band. Therefore, the Irish government
Irish Government
The Government of Ireland is the cabinet that exercises executive authority in Ireland.-Members of the Government:Membership of the Government is regulated fundamentally by the Constitution of Ireland. The Government is headed by a prime minister called the Taoiseach...
was required to break the parity of the Irish pound with the pound sterling to fulfil the ERM conditions.
Pound sterling's forced withdrawal from the ERM
The United Kingdom entered the ERM in October 1990, but was forced to exit the programme within two years after the pound sterlingPound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
came under major pressure from currency speculator
Speculation
In finance, speculation is a financial action that does not promise safety of the initial investment along with the return on the principal sum...
s, including George Soros
George Soros
George Soros is a Hungarian-American business magnate, investor, philosopher, and philanthropist. He is the chairman of Soros Fund Management. Soros supports progressive-liberal causes...
. The ensuing crash of 16 September 1992 was subsequently dubbed "Black Wednesday
Black Wednesday
In politics and economics, Black Wednesday refers to the events of 16 September 1992 when the British Conservative government was forced to withdraw the pound sterling from the European Exchange Rate Mechanism after they were unable to keep it above its agreed lower limit...
". There has been some revision of attitude towards this event given the UK's strong economic performance after 1992, with some commentators dubbing it "White Wednesday". Some commentators, following Norman Tebbit
Norman Tebbit
Norman Beresford Tebbit, Baron Tebbit, CH, PC , is a British politician. A member of the Conservative Party, he served in the Cabinet from 1981 to 1987 as Secretary of State for Employment...
, took to referring to ERM as an "Eternal Recession Mechanism", after the UK fell into recession during the early 1990s. The UK spent over £6bn trying to keep the currency within the narrow limits with reports at the time widely noting that Soros's individual profit of £1bn equated to over 12 pounds sterling for each man, woman and child in Britain http://books.google.com/books?cd=1&id=js_OAAAAIAAJ&dq=soros+pound+man+woman+and+child+in+britain&q=+man+woman+and+child#search_anchorhttp://books.google.com/books?cd=2&id=3OZTqgObT5EC&dq=soros+pound+man+woman+and+child+in+britain&q=+man+woman+and+child+#search_anchorhttp://books.google.com/books?id=J7I26pZK8TUC&pg=PP1&dq=soros+pound+man+woman+and+child+in+britain&cd=3#v=onepage&q=%20man%20woman%20and%20child%20in%20britain&f=false and dubbing Soros as "the man who broke the Bank of England".
The Tory
Conservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...
government suffered badly as a result of Black Wednesday. The change of prime minister to John Major
John Major
Sir John Major, is a British Conservative politician, who served as Prime Minister of the United Kingdom and Leader of the Conservative Party from 1990–1997...
following the resignation of Margaret Thatcher
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...
in November 1990 had seen the Tories overhaul the Labour Party
Labour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...
in the opinion polls, having trailed them by a double-digit margin in most polls during 1990, and eventually manage to win the general election in April 1992
United Kingdom general election, 1992
The United Kingdom general election of 1992 was held on 9 April 1992, and was the fourth consecutive victory for the Conservative Party. This election result was one of the biggest surprises in 20th Century politics, as polling leading up to the day of the election showed Labour under leader Neil...
. However, within a few short months of Black Wednesday, opinion polls showed that the Tory lead had disappeared and Labour had a double-digit lead over the Tories in the opinion polls once more. Despite the strong economic recovery over the next few years, Tory support barely recovered and their 18-year tenure in government was ended in May 1997 by a Labour landslide
United Kingdom general election, 1997
The United Kingdom general election, 1997 was held on 1 May 1997, more than five years after the previous election on 9 April 1992, to elect 659 members to the British House of Commons. The Labour Party ended its 18 years in opposition under the leadership of Tony Blair, and won the general...
, followed by 13 years on the opposition benches.
Increase of margins
In 1993, the margin had to be expanded to 15% to accommodate speculation against the French francFrench franc
The franc was a currency of France. Along with the Spanish peseta, it was also a de facto currency used in Andorra . Between 1360 and 1641, it was the name of coins worth 1 livre tournois and it remained in common parlance as a term for this amount of money...
and other currencies.
Replacement with the euro and ERM II
On 31 December 1998, the European Currency Unit (ECU) exchange rates of the EurozoneEurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
countries were frozen and the value of the euro, which then superseded the ECU at par, was thus established.
In 1999, ERM II replaced the original ERM. The Greek
Greek drachma
Drachma, pl. drachmas or drachmae was the currency used in Greece during several periods in its history:...
and Danish currencies were part of the new mechanism, but when Greece joined the euro in 2001, the Danish krone
Danish krone
The krone is the official currency of the Kingdom of Denmark consisting of Denmark, the Faroe Islands and Greenland. It is subdivided into 100 øre...
was left at that time as the only participant member. A currency in ERM II is allowed to float within a range of ±15% with respect to a central rate against the euro. In the case of the krone, Danmarks Nationalbank
Danmarks Nationalbank
Danmarks Nationalbank is the central bank of the Kingdom of Denmark. It is a non-eurozone member of the European System of Central Banks . The bank issues the Danish currency, the krone....
keeps the exchange rate within the narrower range of ± 2.25% against the central rate of EUR 1 = DKK 7.460 38.
EU countries that have not adopted the euro are expected to participate for at least two years in the ERM II before joining the Eurozone
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
.
Current status of the ERM II
On 1 May 2004, the ten National Central BanksCentral bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
(NCBs) of the new member countries became party to the ERM II Central Bank Agreement. The national currencies themselves were to become part of the ERM II at dates to be agreed.
The Estonian kroon
Estonian kroon
In 1992, coins were introduced in denominations of 5, 10, 20 & 50 senti, as well as 1 kroon. The 1 kroon was struck in cupronickel, the others in aluminum-bronze. However, in 1997, nickel-plated steel 20 senti were introduced, followed by aluminum-bronze 1 kroon in 1998. 5 senti coins were not...
, Lithuanian litas
Lithuanian litas
The Lithuanian litas is the currency of Lithuania. It is divided into 100 centų...
, and Slovenian tolar
Slovenian tolar
The tolar was the currency of Slovenia from 1991 until the introduction of the euro on 1 January 2007. It was subdivided into 100 stotins...
were included in the ERM II on 28 June 2004; the Cypriot pound
Cypriot pound
The pound, also known as the lira , was the currency of Cyprus, including the Sovereign Base Areas in Akrotiri and Dhekelia, until 31 December 2007, when the Republic of Cyprus adopted the euro...
, the Latvian lats
Latvian lats
The lats is the currency of Latvia. It is abbreviated as Ls. The lats is sub-divided into 100 santīmi ....
and the Maltese lira
Maltese lira
The lira was the currency of Malta from 1972 until 31 December 2007. The lira was abbreviated as Lm, although the traditional ₤ sign was often used locally...
on 2 May 2005; the Slovak koruna
Slovak koruna
In 1993, coins were introduced in denominations of 10, 20 and 50 haliers, 1, 2, 5 and 10 korunas. The 10 and 20 halier coins were taken out of circulation on 31 December 2003....
on 28 November 2005. The currencies of the three largest countries which joined the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
on 1 May 2004 (the Polish złoty, the Czech koruna
Czech koruna
The Czech koruna or Czech crown has been the currency of the Czech Republic since 8 February 1993 when, together with its Slovak counterpart, it replaced the Czechoslovak koruna at par....
, and the Hungarian forint
Hungarian forint
The forint is the currency of Hungary. It is divided into 100 fillér, although fillér coins are no longer in circulation. The introduction of the forint on 1 August 1946 was a crucial step of the post-WWII stabilization of the Hungarian economy, and the currency remained relatively stable until...
) are expected to follow eventually.
Other countries to have since joined the eurozone
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
, and hence left ERM II, include Slovenia (1 January 2007), Cyprus (1 January 2008), Malta (1 January 2008), Slovakia (1 January 2009) and Estonia (1 January 2011).
The Hungarian Ministry of Finance said that Hungary originally wanted to adopt the euro in 2010, but this has been delayed. Experts say that the earliest date when Hungary will adopt the euro is 2015. Bulgaria wanted to apply for ERM II membership as soon as possible after the EU entry. In November 2009, Bulgaria confirmed that it planned apply for joining ERM II in early 2010, but was forced to delay its application for at least one year after updated figures put the budget deficit for 2009 at 3.7% of GDP, outside the Maastricht criteria. Romania plans to join ERM in 2010–2012.
Sweden is expected to participate in ERM II in order to meet the convergence criteria
Convergence criteria
The euro convergence criteria are the criteria for European Union member states to enter the third stage of European Economic and Monetary Union and adopt the euro as their currency...
required for switching currency, but has deliberately chosen to stay out of the mechanism so far. This choice is currently tolerated by the ECB
European Central Bank
The European Central Bank is the institution of the European Union that administers the monetary policy of the 17 EU Eurozone member states. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt,...
, but it has warned that such an option will not be permitted for newer union members.
The Swiss Franc had always floated independently until its currency appreciation became unsustainable during the Eurozone debt crisis, at which point it made a compromise to keep the exchange rate at a minimum of 1.20 francs to the euro, which does not constitute a peg. It is important to note that Switzerland is not officially a member of ERM II as it is not an EU member and expresses no ambitions to become an EU member.
Exchange rate bands
In theory, most of the currencies are allowed to fluctuate as much as 15% from their assigned value. In practice, however, the currency of Lithuania is pegged tightly to the central rate, and currencies of Denmark and Latvia deviate very little (usually less than 1%) from it.| Date of entry | Country | Currency | €1= | Band | Notes | |
|---|---|---|---|---|---|---|
| Nominal | Actual | |||||
| 1 January 1999 | Krone Danish krone The krone is the official currency of the Kingdom of Denmark consisting of Denmark, the Faroe Islands and Greenland. It is subdivided into 100 øre... |
7.46038 | 2.25% | <1% | The Danish krone entered the ERM II in 1999, when the euro was created. See Denmark and the euro Denmark and the euro Denmark uses the krone as its currency and does not currently use the euro, having negotiated an opt-out from participation under the Edinburgh Agreement in 1992. In 2000 the government held a referendum on introducing the euro, which was defeated with 46.8% voting yes and 53.2% voting no... for more information. |
|
| 28 June 2004 | Litas Lithuanian litas The Lithuanian litas is the currency of Lithuania. It is divided into 100 centų... |
3.45280 | 15% | 0% | The Lithuanian litas was pegged to the US dollar until 2 February 2002, when it switched to a euro peg. | |
| 2 May 2005 | Lats Latvian lats The lats is the currency of Latvia. It is abbreviated as Ls. The lats is sub-divided into 100 santīmi .... |
0.702804 | 15% | 1% | Latvia has a currency board Currency board A currency board is a monetary authority which is required to maintain a fixed exchange rate with a foreign currency. This policy objective requires the conventional objectives of a central bank to be subordinated to the exchange rate target.... arrangement whose anchor switched from the SDR Special Drawing Rights Special Drawing Rights are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund . Not a currency, SDRs instead represent a claim to currency held by IMF member countries for which they may be exchanged... to the euro on 1 January 2005. |
|
Historical reference
The former members of ERM II are the Greek drachmaGreek drachma
Drachma, pl. drachmas or drachmae was the currency used in Greece during several periods in its history:...
, Slovenian tolar
Slovenian tolar
The tolar was the currency of Slovenia from 1991 until the introduction of the euro on 1 January 2007. It was subdivided into 100 stotins...
, Cypriot pound
Cypriot pound
The pound, also known as the lira , was the currency of Cyprus, including the Sovereign Base Areas in Akrotiri and Dhekelia, until 31 December 2007, when the Republic of Cyprus adopted the euro...
, Estonian kroon
Estonian kroon
In 1992, coins were introduced in denominations of 5, 10, 20 & 50 senti, as well as 1 kroon. The 1 kroon was struck in cupronickel, the others in aluminum-bronze. However, in 1997, nickel-plated steel 20 senti were introduced, followed by aluminum-bronze 1 kroon in 1998. 5 senti coins were not...
, Maltese lira
Maltese lira
The lira was the currency of Malta from 1972 until 31 December 2007. The lira was abbreviated as Lm, although the traditional ₤ sign was often used locally...
and Slovak koruna
Slovak koruna
In 1993, coins were introduced in denominations of 10, 20 and 50 haliers, 1, 2, 5 and 10 korunas. The 10 and 20 halier coins were taken out of circulation on 31 December 2003....
.
| Period | Country | Currency | €1= | Band | Notes | |
|---|---|---|---|---|---|---|
| Nominal | Actual | |||||
| 31 December 1998 — 16 January 2000 |
Drachma Greek drachma Drachma, pl. drachmas or drachmae was the currency used in Greece during several periods in its history:... |
353.109 | 15% | |||
| 17 January 2000 — 31 December 2000 |
340.750 | |||||
| 28 June 2004 — 31 December 2006 |
Tolar Slovenian tolar The tolar was the currency of Slovenia from 1991 until the introduction of the euro on 1 January 2007. It was subdivided into 100 stotins... |
239.640 | 15% | 0.16% | ||
| 2 May 2005 — 7 December 2007 |
Pound Cypriot pound The pound, also known as the lira , was the currency of Cyprus, including the Sovereign Base Areas in Akrotiri and Dhekelia, until 31 December 2007, when the Republic of Cyprus adopted the euro... |
0.585274 | 15% | 2.1% | ||
| 7 December 2007— 31 December 2007 |
0% | The Cypriot pound has been pegged to the euro since 7 December 2007. Before then, it floated against the euro in a ±15% range. | ||||
| 28 June 2004— 31 December 2010 |
Kroon Estonian kroon In 1992, coins were introduced in denominations of 5, 10, 20 & 50 senti, as well as 1 kroon. The 1 kroon was struck in cupronickel, the others in aluminum-bronze. However, in 1997, nickel-plated steel 20 senti were introduced, followed by aluminum-bronze 1 kroon in 1998. 5 senti coins were not... |
15.6466 | 15% | 0% | The Estonian kroon had been pegged to the German mark German mark The Deutsche Mark |mark]], abbreviated "DM") was the official currency of West Germany and Germany until the adoption of the euro in 2002. It is commonly called the "Deutschmark" in English but not in German. Germans often say "Mark" or "D-Mark"... since its re-introduction on 20 June 1992, and then to the euro. It was fixed in 13 July 2010. |
|
| 2 May 2005 — 31 December 2007 |
Lira Maltese lira The lira was the currency of Malta from 1972 until 31 December 2007. The lira was abbreviated as Lm, although the traditional ₤ sign was often used locally... |
0.429300 | 15% | 0% | The Maltese lira has been pegged to the euro since joining ERM II. Only two exceptions exist: 2005-05-02 (ECB rate: 1 EUR = 0.4288 MTL) and 2005-08-15 (ECB rate: 1 EUR = 0.4292 MTL). | |
| 28 November 2005 — 16 March 2007 |
Koruna Slovak koruna In 1993, coins were introduced in denominations of 10, 20 and 50 haliers, 1, 2, 5 and 10 korunas. The 10 and 20 halier coins were taken out of circulation on 31 December 2003.... |
38.4550 | 15% | 12% | ||
| 17 March 2007 — 27 May 2008 |
35.4424 | 12% | ||||
| 28 May 2008 — 31 December 2008 |
30.1260 | 1.9% | ||||
External links
- European Central Bank press releases:
- On inclusion of the 10 new NCBs
- On inclusion of the Slovenian tolar
- On inclusion of the Lithuanian litas
- On inclusion of the Estonian kroon
- On inclusion of the Latvian lats
- On inclusion of the Cyprus pound
- On inclusion of the Maltese lira
- On inclusion of the Slovak koruna