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hello Sara can I explain any financial concepts professor Siegfried can you explain the European Exchange Rate Mechanism well Sara the European Exchange Rate Mechanism was a system introduced by the European community in March 1979 as part of the European monetary system EMS to reduce exchange rate variability and achieve monetary stability in Europe in preparation for economic and monetary union in the introduction of a single currency the euro which took place on january 1st 1999 after the adoption of the euro policy changed to Lincoln currencies of countries outside the euro zone to the Euro which was the central currency the goal was to improve stability of those currencies as well as to gain an evaluation mechanism for potential eurozone members this mechanism is known as erm - Thank You professor for explaining the European Exchange Rate Mechanism