Home Glossary EMS (European Monetary System)

EMS (European Monetary System)

21.07.2017

The European Monetary System was organized in 1979 to support currency stability and foster the movement towards economic convergence. States who took part in the system had to limit the volatility of their currency within a 2.25% limit on either side. The EMS mechanism laid down an exchange rate mechanism, formed the ECU (European Currency Unit) and aligned the European Monetary Cooperation Fund. This European monetary system lasted until the end of 1998 and was replaced by the euro at the beginning of 1999.

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