Search results for: “fluctuation margin”
-
Numeraire System
A multinational currency stabilization arrangement wherein participating national currencies are assigned a central rate, or value, in terms of a given unit of account; this rate is based upon a basket of all the participating currencies, weighted according to defined criteria. A margin would be fix…
-
Basel Agreement
An agreement, concluded April 24, 1972, among members of the European Economic Community for the purpose of narrowing the margins of fluctuation among community currencies. Participants in the agreement were Belgium, Germany, France, Luxembourg, Italy, and the Netherlands. The agreement served as th…
-
Maastricht criteria
Maastricht criteria These are five criteria that determine whether an EU country is ready to adopt the euro. They relate to: Price stability: The inflation rate should be no more than 1.5 percentage points above the rate for the three EU countries with the lowest inflation over the previous year; Budget deficit: This must generally…