European Monetary System

The EMS was created in 1979 to support monetary stability, move Europe
toward closer economic integration, and avoid disruptions in trade
resulting from fluctuations in currency exchange rates. EMS members
deposit gold and dollar reserves with the European Monetary Cooperation
Fund (EMCF) in exchange for the issuance of European currency units (ecu).
The EMS has three main features: the ecu, an exchange rate and
intervention mechanism, and credit mechanisms to support member countries.
All EC members except Greece and the United Kingdom participate in the
exchange rate mechanism of the EMS.