View source for European Exchange Rate Mechanism

{{short description|European system to reduce exchange rate variability after the Euro}}
{{about|the second European Exchange Rate Mechanism (ERM II)|ERM I|European Monetary System}}
{{Use dmy dates|date=July 2020}}
{{Eurozone Labelled Map}}

The '''European Exchange Rate Mechanism''' ('''ERM&nbsp;II''') is a system introduced by the [[European Economic Community]] on 1 January 1999 alongside the introduction of a [[currency union|single currency]], the [[euro]] (replacing ERM 1 and the euro's predecessor, the [[European Currency Unit|ECU]]) as part of the [[European Monetary System]] (EMS), to reduce [[exchange rate]] variability and achieve monetary stability in Europe.

After the adoption of the euro, policy changed to linking currencies of EU countries outside the [[eurozone]] to the euro (having the common currency as a central point). The goal was to improve the stability of those currencies, as well as to gain an evaluation mechanism for potential eurozone members. As of January 2025, two currencies participate in ERM II: the [[Danish krone]] and the [[Bulgarian lev]].

==Intent and operation==
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 Unit]] (ECU), the European unit of account, whose value was determined as a weighted average of the participating currencies.<ref>{{Cite web|url=http://lexicon.ft.com/Term?term=European-Currency-Unit|title=European Currency Unit Definition from Financial Times Lexicon|website=lexicon.ft.com|access-date=31 December 2016|archive-date=31 October 2018|archive-url=https://web.archive.org/web/20181031174118/http://lexicon.ft.com/Term?term=European-Currency-Unit|url-status=dead}}</ref>

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]], the [[Spanish peseta]], the [[Portuguese escudo]] and [[Pound sterling]], which were allowed to fluctuate by ±6%).<ref>{{Cite web|url=https://ec.europa.eu/info/business-economy-euro/economic-and-fiscal-policy-coordination/economic-and-monetary-union_en|title=Economic and Monetary Union|website=European Commission – European Commission}}</ref> Determined intervention and loan arrangements protected the participating currencies from greater exchange rate fluctuations.

[[United Kingdom]] [[Chancellor of the Exchequer]] [[Denis Healey]] reportedly chose not to join the ERM in 1979 owing to concerns that it would benefit the German economy by preventing the Deutsche Mark from appreciating, at the expense of the economies of other countries.<ref name=IBT19Oct2015DHIM>[http://www.ibtimes.co.uk/william-keegan-david-camerons-eu-referendum-raises-spectre-thatcher-era-euroscepticism-1524701 William Keegan: David Cameron's EU referendum raises spectre of Thatcher-era euroscepticism] W. Keegan, International Business Times, 19 October 2015</ref> The UK did join the ERM in October 1990 under Chancellor [[John Major]], in a move which at the time was largely supported by business and the press,<ref>{{cite book|author=John Major|title=John Major: The Autobiography|publisher=Harper Collins|year=1999|page=163}}</ref> but was forced to leave again two years later on [[Black Wednesday]].<ref>{{Cite journal |last1=Eichengreen |first1=Barry |last2=Naef |first2=Alain |date=2022 |title=Imported or Home Grown? The 1992-3 EMS Crisis |url=http://dx.doi.org/10.3386/w29488 |journal=Journal of International Economics |location=Cambridge, MA|doi=10.3386/w29488 }}</ref>

==Historical exchange-rate regimes for EU members==
{{Further|History of the euro}}
The chart below provides a full summary of all applying [[exchange-rate regime]]s for [[Member state of the European Union|EU members]], since the [[European Monetary System]] with its Exchange Rate Mechanism and the related new common currency [[European Currency Unit|ECU]] came into being on 13 March 1979. The euro replaced the ECU 1:1 at the exchange rate markets, on 1 January 1999. Between 1979 and 1999 the [[Deutsche Mark|D-Mark]] functioned as a ''de facto'' anchor for the ECU, meaning there was only a minor difference between pegging a currency against the ECU and pegging it against the D-Mark. 
{{Exchange-rate regime for EU members}}
The [[eurozone]] was established with its first 11 member states on 1 January 1999. The first [[enlargement of the eurozone]], to Greece, took place on 1 January 2001, one year before the euro had physically entered into circulation. The zone's next enlargements were with states that [[2004 enlargement of the European Union|joined the EU in 2004]], and then joined the eurozone on 1 January in the mentioned year: Slovenia (2007), Cyprus (2008), Malta (2008), Slovakia (2009), Estonia (2011), Latvia (2014), Lithuania (2015).  Croatia, which joined in the EU 2013, adopted the euro in 2023.

All new EU members having joined the bloc after the signing of the [[Maastricht Treaty]] in 1992 are obliged to adopt the euro under the terms of their accession treaties.<ref name=":0">{{Cite news|url=https://www.theguardian.com/business/2016/aug/10/joseph-stiglitz-the-problem-with-europe-is-the-euro|title=The problem with Europe is the euro|date=10 August 2016|newspaper=The Guardian|language=en-GB|issn=0261-3077|access-date=31 December 2016}}</ref> However, the last of the five economic [[euro convergence criteria|convergence criteria]], which need to be complied with in order to qualify for euro adoption, is the exchange rate stability criterion. This requires having been a member of the ERM for a minimum of two years without the presence of "severe tensions" for the currency exchange rate.<ref name=":1">{{cite news|url=http://www.radio.cz/en/section/business/czech-officials-talk-up-euro-adoption-but-target-date-still-not-on-agenda|title=Radio Prague – Czech officials talk up euro adoption but target date still not on agenda|access-date=31 December 2016}}</ref>

===Parity break of the Irish pound and sterling===
To participate in the European Monetary System, Ireland chose to break the [[Irish pound]]'s parity with [[pound sterling|sterling]] in 1979, because the UK had decided not to participate.<ref name=ICBpound>{{Cite journal|url=https://www.centralbank.ie/docs/default-source/consumer-hub-library/the-irish-pound-from-origins-to-emu.pdf | title=The Irish Pound: From Origins to EMU|author=Irish Central Bank|access-date=13 July 2020|location=IE|journal=Quarterly Bulletin|date=Spring 2003}}</ref> (The Irish Central Bank had maintained parity with sterling since the foundation of the state in 1922. "It was only in the 1970s, when high inflation in the UK threatened price stability in Ireland, that alternatives were seriously considered".<ref name=ICBpound/>)

===Forced withdrawal of the sterling===
{{main|Black Wednesday}}
The United Kingdom entered the ERM in October 1990, but was forced to exit the programme within two years after [[Pound sterling|sterling]] came under major pressure from currency [[speculation|speculator]]s. The ensuing crash of 16 September 1992 was subsequently dubbed "[[Black Wednesday]]". There was some revision of attitude towards this event given the UK's strong economic performance after 1992, with some commentators dubbing it "White Wednesday".<ref>{{cite journal|url=http://www.timesonline.co.uk/tol/comment/columnists/anatole_kaletsky/article1080261.ece|archive-url=https://web.archive.org/web/20100529150111/http://www.timesonline.co.uk/tol/comment/columnists/anatole_kaletsky/article1080261.ece|url-status=dead|archive-date=29 May 2010|title=The reason that Europe is having a breakdown...it's the Euro, stupid|author=Kaletsky, Anatole|access-date=30 December 2008|location=UK|journal=The Times|date=9 June 2005}}</ref>

Some commentators, following [[Norman Tebbit]], took to referring to ERM as an "Eternal Recession Mechanism",<ref>{{Cite journal|url=https://www.theguardian.com/politics/2005/feb/10/freedomofinformation.economy|author=Tebbit, Norman|title=An electoral curse yet to be lifted|access-date=30 December 2008 | journal=The Guardian |location=UK | date=10 February 2005 }}</ref> after the UK fell into recession in 1990. The UK spent over £6&nbsp;billion trying to keep the currency within the narrow limits with reports at the time widely noting that the controversial [[Hungarian Americans|Hungarian-American]] investor [[George Soros]]'s individual profit of £1&nbsp;billion equated to over £12 for each man, woman and child in Britain and dubbing Soros "the man who broke the Bank of England".<ref>{{cite book|last=Slater|first=Robert|title=Soros : the life, times & trading secrets of the world's greatest investor|year=1996|publisher=Irwin Professional Pub.|location=Burr Ridge, Ill.|isbn=0786303611|page=186|url=https://books.google.com/books?id=js_OAAAAIAAJ&q=+man+woman+and+child}}</ref><ref>{{cite book|last=Constable|first=Nick|title=This is gambling|year=2003|publisher=Sanctuary|location=London|isbn=1860744958|pages=46, 168|url=https://books.google.com/books?id=3OZTqgObT5EC&q=+man+woman+and+child+}}</ref><ref>{{cite book|last=Slater|first=Robert|title=Soros the world's most influential investor|year=2009|publisher=McGraw-Hill|location=New York|isbn=978-0071608459|url=https://books.google.com/books?id=J7I26pZK8TUC&q=+man+woman+and+child+in+britain&pg=PP1}}</ref>

Britain's membership of the ERM was also blamed for prolonging the recession at the time,<ref>{{cite news| url=http://news.bbc.co.uk/1/hi/business/2259648.stm | work=BBC News | first=Evan | last=Davis | title=Lessons learned on 'Black Wednesday' | date=15 September 2002}}</ref> and Britain's exit from the ERM was seen as an economic failure which contributed significantly to the defeat of the [[Conservative Party (UK)|Conservative]] government of [[John Major]] at the [[1997 United Kingdom general election|general election]] in May 1997, despite the strong economic recovery and significant fall in unemployment which that government had overseen after Black Wednesday.<ref>{{cite news| url=http://news.bbc.co.uk/1/hi/uk_politics/vote_2005/basics/4393323.stm | work=BBC News | title=1997: Labour landslide ends Tory rule | date=15 April 2005}}</ref>

===Increase of margins===
In August 1993, the margin was expanded to 15% to accommodate speculation against the [[French franc]] and other currencies.<ref name=":2">{{Cite book|url=https://books.google.com/books?id=jaIvdqxtYxsC&q=August+1993+margin+15%25+French+franc&pg=PA30|title=Credit Growth in Emerging Europe: A Cause for Stability Concerns?|last1=Sirtaine|first1=Sophie|last2=Skamnelos|first2=Ilias|date=1 January 2007|publisher=World Bank Publications|pages=30|language=en}}</ref>

== History<span class="anchor" id="History of the ERM II"></span> ==
On 31 December 1998, the European Currency Unit (ECU)<ref>{{Cite web|url=http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31997R1103:EN:HTML | title=Council Regulation (EC) No 1103/97 of 17 June 1997 on certain provisions relating to the introduction of the euro
 | access-date=25 April 2010}}</ref> exchange rates of the [[eurozone]] 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.<ref>{{Cite book|url=https://books.google.com/books?id=vPjOCwAAQBAJ&q=1999%2C+ERM+II+replaced+the+original+ERM&pg=PT236|title=The Balkans: Foreign Direct Investment and EU Accession|last=Bitzenis|first=Aristidis|date=23 March 2016|publisher=Routledge|isbn=9781317040651|language=en}}</ref>{{page number|date=December 2020}} The [[Modern drachma|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 7.46038.<ref>{{Cite web |title=Learn about inflation, interest rates and the fixed exchange rate policy |url=https://www.nationalbanken.dk/en/what-we-do/stable-prices-monetary-policy-and-the-danish-economy/learn-about-inflation-interest-rates-and-the-fixed-exchange-rate-policy |access-date=16 August 2023 |publisher=[[Danmarks Nationalbank]]}}</ref><ref name="ECB list of euro central rates"/>

EU countries that have not adopted the euro are expected to participate for at least two years in ERM II before joining the [[eurozone]].<ref name=":0" /><ref name=":1" />

=== New EU members ===
On 1 May 2004, the ten [[central bank|national central banks]] (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.<ref>{{Cite web|url=http://ec.europa.eu/economy_finance/euro/adoption/erm2/index_en.htm|title=What is ERM II? – European Commission|website=ec.europa.eu|access-date=31 December 2016}}</ref>

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.<ref>{{Cite web|url=http://www.ecb.int/press/pr/date/2005/html/pr051128.en.html |title=European Central Bank |date=28 November 2005 |publisher=European Central Bank |access-date=26 April 2011}}</ref>

On 10 July 2020 it was announced that the [[Bulgarian lev]] (which had joined the EU on 1 January 2007) and [[Croatian kuna]] (which had joined the EU on 1 July 2013) would be included in the ERM II.<ref>{{Cite press release|url=https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr200710~4aa5e3565a.en.html|title=Communiqué on Bulgaria|author=European Central Bank|date=10 July 2020|via=www.ecb.europa.eu}}</ref><ref>{{Cite press release|url=https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr200710_1~88c0f764e7.en.html|title=Communiqué on Croatia|author=European Central Bank|date=10 July 2020|via=www.ecb.europa.eu}}</ref>

These states (with the exception of Bulgaria) have all since joined the [[eurozone]], and hence left ERM II: [[Slovenia]] (1 January 2007), [[Cyprus]] (1 January 2008), [[Malta]] (1 January 2008), [[Slovakia]] (1 January 2009), [[Estonia]] (1 January 2011), [[Latvia]] (1 January 2014), [[Lithuania]] (1 January 2015),<ref name=":3">{{Cite news|url=http://www.politico.eu/article/a-timeline-of-the-eurozones-growth/|title=A timeline of the eurozone's growth|date=31 December 2016|newspaper=POLITICO|language=en-US|access-date=31 December 2016}}</ref> and [[Croatia]] (1 January 2023).<ref name="auto">{{Cite web |title=Croatia set to join the euro area on 1 January 2023: Council adopts final required legal acts |url=https://www.consilium.europa.eu/en/press/press-releases/2022/07/12/croatia-set-to-join-the-euro-area-on-1-january-2023-council-adopts-final-required-legal-acts/ |access-date=2022-07-13 |website=www.consilium.europa.eu |language=en}}</ref>

=== Current status ===
As of January 2025, two currencies participate in ERM II: the [[Danish krone]] and the [[Bulgarian lev]]. The currencies of Sweden (the [[Swedish krona]]), the three largest countries which joined the [[European Union]] on 1 May 2004 (the [[Polish złoty]], the [[Czech koruna]], and the [[Hungarian forint]]), and Romania which joined on 1 January 2007 (the [[Romanian leu]]), are required to join in accordance with the terms of the applicable treaties of accession.

Sweden [[2003 Swedish euro referendum|has voted in a referendum]] to stay out of the mechanism, despite being expected to join by the ECB, since Sweden has no opt-out like Denmark. EU members are required to join the ERM by the [[Euro convergence criteria|Maastricht convergence criteria]].<ref>{{Cite news|url=http://news.bbc.co.uk/1/hi/business/2002170.stm |title=Sweden 'not ready' for euro |date= 22 May 2002|access-date=14 December 2011 |work=BBC News}}</ref>

=== Exchange rate bands ===
In theory, most of the currencies are allowed to fluctuate as much as 15% from their assigned value.<ref name=":2" /> In practice, however, the currency of Denmark deviates very little.<ref>{{Cite news|url=https://mises.org/blog/danish-central-bank-stumbles-its-currency-peg-euro|title=Danish Central Bank Stumbles with Its Currency Peg to the Euro|last=Ryan|date=19 May 2016|newspaper=Mises Institute|access-date=31 December 2016}}</ref>

{| class="wikitable"
|-
!rowspan="2" style="width:90px"| Date of entry <ref name="ECB list of euro central rates">{{cite web|url=https://www.ecb.europa.eu/ecb/tasks/forex/html/index.en.html|title=Foreign exchange operations|publisher=European Central Bank|access-date=12 July 2020}}</ref><ref>{{Cite web|url=https://ec.europa.eu/info/business-economy-euro/euro-area/introducing-euro/adoption-fixed-euro-conversion-rate/erm-ii-eus-exchange-rate-mechanism_en|title=ERM II – the EU's Exchange Rate Mechanism|publisher=European Commission}}</ref>
!rowspan="2" style="width:90px"| Country
!rowspan="2"| Currency
!rowspan="2"| €1 =<ref name="ECB list of euro central rates"/>
!colspan="2"| Band
!rowspan="2"| Notes
|-
! Nominal
! Actual
|-
| 1 January 1999
| {{DEN}}
| [[Danish krone|Krone]] (kr.)
| 7.46038
| 2.25%
| <1%
| The krone entered the ERM II in 1999, when the euro was created. See [[Denmark and the euro]] for more information.
|-
| 10 July 2020
| {{BGR}}
| [[Bulgarian lev|Lev]] (лв.)
| 1.95583
| 15%
| 0%
|The lev has been under [[currency board]] management since 1997, through a fixed exchange rate of the Bulgarian lev against the Deutsche Mark and subsequently the euro. See [[Bulgaria and the euro]] for more information.
|}

==== Historical reference ====
The former members of ERM II are the [[Modern drachma|Greek drachma]], [[Slovenian tolar]], [[Cypriot pound]], [[Estonian kroon]], [[Maltese lira]], [[Slovak koruna]], [[Latvian lats]], [[Lithuanian litas]], and [[Croatian kuna]].<ref name=":3" />

{| class="wikitable"
|-
! rowspan="2" | Period
! rowspan="2" | Country
! rowspan="2" | Currency
! rowspan="2" | €{{val|1.00}} =
! colspan="2" | Band
! rowspan="2" | Notes
|-
! Nominal
! Actual
|-
| {{nowrap|1 January 1999 –}}<br /> 16 January 2000
| rowspan="2"| {{GRE}}
| rowspan="2"| [[Modern drachma|Drachma]] (₯)
| {{val|353.109}}<ref>{{Cite web|url=http://www.ecb.int/press/pr/date/1998/html/pr981231_3.en.html |title=31 December 1998 – Euro central rates and intervention rates in ERM II |date=31 December 1998 |publisher=European Central Bank |access-date=26 April 2011}}</ref>
| rowspan="2" | 15%
| {{unknown}}
|
|-
| {{nowrap|17 January 2000 –}}<br /> 31 December 2000
| {{val|340.75}}<ref>{{Cite web|url=http://www.ecb.int/press/pr/date/2000/html/pr000117.en.html |title=17 January 2000 – Euro central rates and intervention rates in ERM II |date=17 January 2000 |publisher=European Central Bank |access-date=26 April 2011}}</ref>
| {{unknown}}
|
|-
| {{nowrap|28 June 2004 –}}<br /> 31 December 2006
| {{SLO}}
| [[Slovenian tolar|Tolar]] (T)
| {{val|239.64}}<ref>{{Cite web|url=http://www.ecb.int/press/pr/date/2004/html/pr040628.en.html |title=28 June 2004 – Euro central rates and compulsory intervention rates in ERM II |date=28 June 2004 |publisher=European Central Bank |access-date=26 April 2011}}</ref>
| 15%
| 0.16%<ref name="autogenerated1">{{Cite web|url=http://www.ecb.eu/stats/exchange/eurofxref/html/index.en.html |title=ECB historic exchange rates |publisher=Ecb.eu |access-date=26 April 2011}}</ref>
|
|-
| {{nowrap|2 May 2005 –}}<br /> 7 December 2007
| rowspan="2" | {{CYP}}
| rowspan="2" | [[Cypriot pound|Pound]] (£C)
| rowspan="2" | {{val|0.585274}}
| rowspan="2" | 15%
| 2.1%<ref name="autogenerated1"/>
|
|-
| {{nowrap|7 December 2007 –}}<br /> 31 December 2007
| 0%
|
|-
| {{nowrap|2 May 2005 –}}<br /> 31 December 2007
| {{MLT}}
| [[Maltese lira|Lira]] (Lm)
| {{val|0.4293}}
| 15%
| 0%
| The lira had 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).<ref name="autogenerated1"/>
|-
| {{nowrap|28 November 2005 –}}<br /> 16 March 2007
| rowspan="3" | {{SVK}}
| rowspan="3" | [[Slovak koruna|Koruna]] (Sk.)
| {{val|38.455}}<ref>{{Cite web|url=http://www.ecb.int/press/pr/date/2005/html/pr051128.en.html |title=28 November 2005 – Euro central rates and compulsory intervention rates in ERM II |date=28 November 2005 |publisher=European Central Bank |access-date=26 April 2011}}</ref><ref>{{Cite news | title= Slovak Koruna Included in the ERM II | url= http://www.nbs.sk/PRESS/PR051128.HTM | publisher=[[National Bank of Slovakia]] | date=28 November 2005 | access-date=17 March 2007 |archive-url = https://web.archive.org/web/20061002212008/http://www.nbs.sk/PRESS/PR051128.HTM <!-- Bot retrieved archive --> |archive-date = 2 October 2006}}</ref><ref>{{Cite web |author=European Commission |url=http://ec.europa.eu/economy_finance/euro/world/euro_world_6_en.htm |title=Exchange Rate Mechanism II (ERM II) |access-date=17 March 2007 |url-status=dead |archive-url=https://web.archive.org/web/20070423104910/http://ec.europa.eu/economy_finance/euro/world/euro_world_6_en.htm |archive-date=23 April 2007  }}</ref>
|rowspan="3" | 15%
| 12%<ref name="autogenerated1"/>
|
|-
| {{nowrap|17 March 2007 –}}<br /> 27 May 2008
| {{val|35.4424}}<ref>{{Cite news | author=Radoslav Tomek and Meera Louis | title= Slovakia, EU Raise Koruna's Central Rate After Appreciation | url= https://www.bloomberg.com/apps/news?pid=20601087&sid=aiS3SZQS4WPM&refer=home | publisher=[[Bloomberg L.P.|Bloomberg]] | date=17 March 2007 | access-date=17 March 2007 }}</ref><ref>{{Cite web|url=http://www.ecb.int/press/pr/date/2007/html/pr070319.en.html |title=Euro central rates and compulsory intervention rates in ERM II |publisher=European Central Bank |date=19 March 2007 |access-date=26 April 2011}}</ref>
| 12%<ref name="autogenerated1"/>
|
|-
| {{nowrap|28 May 2008 –}}<br /> 31 December 2008
| {{val|30.126}}<ref>{{Cite web|url=http://www.ecb.int/press/pr/date/2008/html/pr080529_1.en.html |title= Euro central rates and compulsory intervention rates in ERM II |publisher=European Central Bank |date=29 May 2008 |access-date=26 April 2011}}</ref>
| 1.9%<ref name="autogenerated1"/>
|
|-
| {{nowrap|28 June 2004 –}}<br /> 31 December 2010
| {{EST}}
| [[Estonian kroon|Kroon]] (kr.)
| {{val|15.6466}}
| 15%
| 0%
| The kroon had been pegged to the [[Deutsche Mark|D–Mark]] since its re-introduction on 20 June 1992, and then to the euro.
|-
| {{nowrap|2 May 2005 –}}<br /> 31 December 2013
| {{LAT}}
| [[Latvian lats|Lats]] (Ls.)
| {{val| 0.7028}}
| 15%
| 1%
| Latvia had a [[fixed exchange-rate system]] arrangement whose anchor switched from the [[special drawing rights|SDR]] to the euro on 1 January 2005.
|-
| {{nowrap|28 June 2004 –}}<br /> 31 December 2014
| {{LTU}}
| [[Lithuanian litas|Litas]] (Lt.)
| {{val|3.4528}}
| 15%
| 0%
| The litas was pegged to the US dollar until 2 February 2002, when it switched to a euro peg.
|-
| {{nowrap|10 July 2020 –}}<br /> 31 December 2022
| {{HRV}}
| [[Croatian kuna|Kuna]] (kn.)
| 7.53450
| 15%
| 0%
|
|}

== See also ==
* [[Euro convergence criteria]]
* [[List of acronyms associated with the eurozone crisis]]

== Citations ==
{{Reflist}}

== External links ==
* [https://www.parliament.uk/about/living-heritage/evolutionofparliament/legislativescrutiny/parliament-and-europe/overview/britain-joins-erm-to-introduction-of-single-currency/ The ERM on the UK Parliament website]
* [https://www.ecb.europa.eu/press/pr/html/index.en.html European Central Bank press releases]
* [https://www.theguardian.com/fromthearchive/story/0,12269,793335,00.html Guardian Unlimited | Special reports | Pound drops out of ERM – 17 September 1992]

{{Euro topics}}

[[Category:Eurozone]]