Exchange Rate Mechanism (ERM)

Exchange Rate Mechanism (ERM),

Exchange Rate Mechanism (ERM) means,

Exchange Rate Mechanism (ERM) means: An Exchange Rate Engine (ERM) is a tool used to manage a country's exchange rate against another country's currencies. It is part of the monetary policy of the economy and is used by the central bank.

  • An exchange rate mechanism (MTC) is a means by which central banks can influence the relative value of their local currency in the foreign exchange market.
  • The ERM allows central banks to change currency parity to normalize trade and / or affect inflation.
  • Generally, ERM is used to keep the exchange rate stable and to minimize the exchange rate in the market.

Literal Meanings of Exchange Rate Mechanism (ERM)

Exchange:

Meanings of Exchange:
  1. The act of giving one thing in return and receiving another (especially of the same type or price).

Sentences of Exchange
  1. Negotiations led to the exchange of land for peace.

Synonyms of Exchange

bandying, interchange, trade-off, change, trade, barter, traffic, swap, trafficking, giving and taking, trading, switch, swapping, reciprocity

Rate:

Meanings of Rate:
  1. Set a pattern or value for a particular scale (object).

  2. Think of it as a particular quality, standard or area.

  3. A measure, quantity or frequency that is usually measured in relation to another quantity or unit of measure.

  4. Pay a fixed price or charge something for something, especially good or service.

  5. Scolding (someone) in anger

Sentences of Rate
  1. This event was considered a great success.

  2. Promotion price

Synonyms of Rate

deem to be, weigh up, tariff, fare, consider to be, gauge, adjudge, judge to be, estimate, value, figure, calculate, charge, evaluate, cost, price, reckon to be, judge, think to be, measure, appraise, put a value on, outlay, amount, hold to be, find to be, hire

Mechanism:

Meanings of Mechanism:
  1. A system of parts that works together in a machine that is part of a machine.

  2. A natural or established process by which something happens or is created.

  3. The theory that all natural phenomena, including life and thought, allow mechanical explanation through physics and chemistry.

Sentences of Mechanism
  1. In the bridge mechanism, the sniper injured his arm

  2. We have no procedure for estimating the success of applications submitted

  3. Much of the controversy stems from the mechanics vs. vitality argument.

Synonyms of Mechanism

agency, structure, vehicle, tool, workings, contraption, appliance, utensil, channel, apparatus, instrument, system, implement, means, channels, gadget, technique, machine, process, operation, contrivance, tackle, procedure

ERM:

Meanings of ERM:
  1. Exchange rate