European Monetary Agreement definition of European Monetary Agreement in the Free Online Encyclopedia.

European Monetary Agreement (EMA), international governmental organization to facilitate settlement of balance of payments balance of payments, balance between all payments out of a country within a given period and all payments into the country, an outgrowth of the mercantilist theory of balance of trade.
..... Click the link for more information. accounts between member states. The EMA, which was administered by the Organization for Economic Cooperation and Development (OECD), existed from 1958 until 1972, replacing the European Payments Union. The EMA provided for the convertibility of the currencies of member states; that meant that the currency of one state could be exchanged directly for the currency of any other member state by nonresidents. In view of the facilities available for balance of payments assistance in the International Monetary Fund International Monetary Fund (IMF), specialized agency of the United Nations, established in 1945. It was planned at the Bretton Woods Conference (1944), and its headquarters are in Washington, D.C.
..... Click the link for more information. , the OECD announced (1972) that the EMA would, therefore, be terminated.

European Monetary Agreement

an agreement on currency cooperation among the European capitalist member countries of the European Payments Union (EPU). The agreement was concluded Aug. 5, 1955, and went into force after the abolition of the EPU and the introduction of convertibility for the currencies of the majority of its members (December 1958).

The European Monetary Agreement set itself the goal of assisting the development of international economic ties, through expansion of multilateral payments and through liberalization of trade and movement of capital. The agreement stimulated the preferential use of an open currency market for payments between members in place of the mechanism of multilateral clearing payments. The European Fund was set up with a total of 607.5 million settlement units (equated with the dollar in terms of gold content), of which 271.6 million remained after the abolition of the EPU and 335.9 million were subject to dues collection from partici-pants. Management of the European Fund was entrusted to a board of directors, appointed byjthe council of the Organization for Economic Cooperation and Development (OECD). The Bank for International Settlements in Basel is the technical agent for operations of the European Monetary Agreement.

Unlike the EPU, European Monetary Agreement provides for the balance of multilateral payments to be paid in gold or dollars by each country. Credits of the European Fund are allocated by decision of the council of the OECD for periods up to three years and by decision of the board of the European Monetary Agreement for periods up to one year in sums not exceeding $50 million. Indebtedness of countries to the European Fund for credits received during the entire period of the existence of the fund is a little over $100 million. Therefore there has been no need to require dues from participants for replenishing the fund. The role of the European Monetary Agreement in determining the currency policy of member countries is insignificant, since in this capacity it is duplicating the International Monetary Fund.

Mentioned in	?		Encyclopedia browser	?		Full browser	?
No references found			European Center for Nuclear Research European Coal and Steel Community European Coal and Steel Community ECSC European Commission European Community European Community of Writers European Computer Manufacturers Association European Computer-Industry Research Centre GmbH European corn borer European Council European Court of Human Rights European Court of Justice European Currency Unit European Defense Community European Development Fund European Economic Area European Economic Community European Foulbrood European Free Trade Association European Free Trade Association EFTA European Geostationary Navigation Overlay System European Grape Moth European hornbeam European Investment Bank European Launcher Development Organization European Monetary Agreement European Monetary System European Mudminnow European Organization for Nuclear Research European Parliament European Payments Union European Physical Society EPS European Pikeperch European porcelain European Recovery Program European Red Mite European Sea Bass European Social Fund European Southern Observatory European Space Agency European Space Operations Center European Space Research and Technology Center European Space Research Institute European Space Research Organization European Strategic Programme for Research in Information Technology European Telecommunications Standards Institute European Union European Wildcat Europeoid Race europium europium halide			European Mobile Early Warning System European Mobile Integrated Location System European Mobile System European Mobility Scheme for Physics Students European Mobility Service Office European Model Company Law Act European Model for Distance Education and Learning European Model Rocketry European Modeling of Atmospheric Constituents European Modern Music Education Network European Modern Restaurant Association European Modular Cultivation System European Modular Missile European Molecular Biological Network European Molecular Biology Conference European Molecular Biology Laboratory European Molecular Biology Open Software Suite European Molecular Biology Organization European Molecular Biology Organization Journal European Molecular Computing Consortium European Molecular Genetics Quality Network European Molecular Imaging Laboratories European Molecular Liquids Group European moles European moles European moles European Monetary Agreement European Monetary Cooperation Fund European Monetary Institute European Monetary Institute European Monetary System European Monetary System European Monetary System European Monetary System European Monetary System European Monetary System 2 European Monetary System 2 European Monetary System 2 European Monetary Union European Monetary Union European Monetary Union European Monetary Union European Monetary Unit European Monetary Unit of Account European Monitoring and Evaluation Program European Monitoring Centre for Drugs and Drug Addiction European Monitoring Centre on Change European Monitoring Centre on Racism and Xenophobia European Monitoring Group on Meningococci European Mormon Studies Association European Mortar Industry Organisation European Mortgage Finance Agency European Mosquito Control Association European Motor News European Motorcycle Union European Mouflon European Mouflon