EMS FLUCTUATION BAND HELD STEADY THIS SUMMER.
The fluctuation band for currencies participating in the European Monetary System's Exchange Rate Mechanism (ERM) remained stable between July 1 and August 31, according to figures published at the beginning of August by Eurostat, the Statistical Office of the European Communities. Over these two months, the Greek Drachma was again the strongest currency in the ERM grid. Whilst remaining firm, the Drachma did move closer to the other European currencies over the second half of August. At the beginning of July, ERM currencies were moving within a 6.84% band. It widened to 7.98% halfway through the period before contracting to 4.84% by the end of August. Excluding the Greek Drachma, the fluctuation band stood at 1.42% on July 1, and 1.23% on both July and August 31. The narrowness of this band shows that all the currencies in the ERM grid are very close to their respective central rates.