European Exchange Rate Mechanism

The European Exchange Rate Mechanism (ERM II) is a system established by the European Economic Community in 1999 to reduce exchange rate variability and achieve monetary stability in Europe. It allows EU countries outside the eurozone to peg their currencies to the euro, with the goal of improving their stability and providing a evaluation mechanism for potential eurozone members. As of March 2024, two currencies participate in ERM II: the Danish krone and the Bulgarian lev. The system has undergone several changes since its introduction, including the adoption of the euro as a single currency and the participation of new EU member states.learn more on wikipedia