snake system

(banking/foreign exchange-obsolete) The former agreement between Belgium, The Netherlands, Luxembourg, Denmark, Sweden, Norway, and West Germany, linking the currencies of these countries together in an exchange system. The signatories agreed to limit fluctuations in exchange rates among their currencies to 2.25 percent above or below set median rates. The snake was designed to be the first stage in forming a uniform Common Market currency which was finally achieved January 1, 2002. See Euro.

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