European System of Central Banks

European System of Central Banks in Europe

Description of European System of Central Banks (ESCB)

The Concise Encyclopedia of the European Union describes european system of central banks (escb) in the following terms: [1] The ESCB, nicknamed the Eurofed by analogy with the US Federal Reserve system, consists of the European Central Bank (ECB) and the national central banks of the EU member states participating in the single currency. Each national central bank supplies a member of the ECB’s Governing Council. Collectively, they use their knowledge of markets and their links with traders to advise the ECB and to execute its monetary and foreign exchange policy. They also make available to it by way of reserves up to 650 billion in gold and foreign exchange (the UK is exempted from this obligation through its opt-out fromStage Three of EMU). In case of need, all the reserves of the single currencyparticipants are callable by the ECB through the ESCB network.

European System of Central Banks and the European Union

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  • ESCB

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Notas y References

  1. Based on the book “A Concise Encyclopedia of the European Union from Aachen to Zollverein”, by Rodney Leach (Profile Books; London)

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