European Monetary Cooperation Fund

Institution funded by the members of the Exchange Rate Mechanism (ERM) to stabilize the exchange rates of European Union member countries if they fluctuated by more than the range permitted by the ERM. If the exchange rate of a currency fell too far, EMCF would buy quantities of the currency on the foreign-exchange market, and if it rose too far, EMCF would sell enough of the currency to bring down the exchange rate. In 1994 it was absorbed by the European Monetary Institute (which was itself superseded by the European Central Bank).