ERM-2: And Then There Were Seven

Latvia, Cyprus and Malta joined ERM-2 on April 29, as a precursor to adopting the euro in late 2007 or 2008. Estonia, Slovenia and Lithuania (which all intend to adopt the euro in two years time) entered the exchange rate system last year, while Denmark has been a member since 1999. They are now obliged to keep their currencies within a 15% band around their respective central parities of LVL0.702804/EUR, MTL0.429300/EUR and CYP0.585274/EUR. However, for the three countries to fulfil the currency stability criteria of the Maastricht Treaty, fluctuations must now be no more than 2.25%. This should not pose

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