Exchange Rate Mechanism

British  

noun

1.  ERM.  the mechanism formerly used in the European Monetary System in which participating governments committed themselves to maintain the values of their currencies in relation to the ECU

2.  ERM II.  Also: Exchange Rate Mechanism II.  the mechanism used to stabilize the currencies of European Union states that have not adopted the euro but wish to maintain the value of their currency in relation to it

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Example Sentences

He was reportedly one of the investors who made money betting heavily against the pound prior to "Black Wednesday" - the UK's withdrawal from the European Exchange Rate Mechanism in September 1992.

From BBC

When a public row erupted over his continued support for the exchange rate mechanism Lawson finally resigned in October 1989 and was replaced by John Major.

From BBC

British 10-year gilt yields are above 4% for the first time in 12 years and the gilt yield premium over German bunds is now homing in on two full percentage points for the first time in 31 years - levels not seen since just before the pound was ejected from Europe's pre-euro currency grid system, the exchange rate mechanism, in 1992.

From Reuters

Further highlighting the extent to which investors have punished UK assets, the difference in the 10-year borrowing costs of the British and German governments exploded to its widest since 1992, when the UK crashed out of the European Exchange Rate Mechanism.

From Reuters

There was a collapse in the pound in 1992, when Britain was forced out of the European Exchange Rate Mechanism.

From Reuters