Central rate

With central (Engl. Central rate ) is an officially defined exchange rate meant a currency.

Fixed exchange rates

In a fixed exchange rate system, the central rate is the fixed rate of the currency.

EWS

In the European Monetary System (EMS), a central rate against the ECU as well as the calculated bilateral central rates against the other member currencies were set for each currency . These central rates were not fixed. They could be exceeded or undercut by 4.5% (later 15%) without the central banks intervening.

On the basis of the bilateral central rates valid in the EMS at the end of 1998, the national exchange rates valid from January 1, 1999 for the euro applicable from this point in time were irrevocably fixed (as a means of cash payment it was only introduced on January 1, 2002 in 11 EU countries for the time being).

ERM II

The EU countries that have not yet belonged to the euro zone have the option of setting a euro central rate within the framework of ERM II (staying in it for two years is one of the so-called convergence criteria that make participation in the euro possible); however, there are no bilateral central rates. Here, too, the central rate is not fixed. The market prices can fluctuate up to 15%.