Abstract
The ECU is a basket of fixed amounts of EEC currencies, the composition of which is occasionally revised to allow in new member countries. It is closely linked to the EMS and was designed as an initial step in providing greater stability from fluctuating exchange rates. The exchange rates of those countries which have become full members of the EMS are fixed within a narrow band to an ECU central rate, whereas the exchange rates for those countries which are not full members of the EMS float against a theoretical or imputed ECU central rate. The exact weight of each currency as a percentage of the whole depends on its current exchange rate and changes continually. Table 5 shows the ECU central rates and corresponding percentage weights on 1 September 1989.
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© 1990 Derrick Edwards
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Edwards, A.D.P. (1990). European Currency Units (ECUs). In: The Exporter’s & Importer’s Handbook on Foreign Currencies. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-11852-6_13
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DOI: https://doi.org/10.1007/978-1-349-11852-6_13
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-11854-0
Online ISBN: 978-1-349-11852-6
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