From Longman Dictionary of Contemporary Englishexchange rate mechanismexˈchange rate ˌmechanism noun [uncountable] PE (abbreviation ERM) a system for controlling the exchange rate between the money of one country and that of another
Examples from the Corpus
exchange rate mechanism• It seems, however, that the decision to withdraw sterling from the exchange rate mechanism has paid dividends.• David Prosser, chief executive, said withdrawal from the exchange rate mechanism and interest cuts had greatly improved business prospects.• The obvious parallel is with the reaction to Britain's entry into the exchange rate mechanism 18 months ago.• Nigel Lawson rightly wanted to join the exchange rate mechanism two years ago - as did Sir Geoffrey Howe.• Ford blamed the rises on the fall in the pound since the Government pulled out of the exchange rate mechanism in September.• Will he please grant an urgent debate on the specific subject of the exchange rate mechanism?• The exchange rate mechanism is a discipline to reduce inflation.• The exchange rate mechanism is a voluntary prototype for a single currency.From Longman Business DictionaryExchange Rate MechanismExˈchange Rate ˌMechanism abbreviation ERM nounECONOMICS a system used by Europe’s central banks to control the exchange rate between the currencies of EU member countries, which continues to be used in countries where the euro is not the currency 