1992 in late September, the European foreign exchange market was filled with fierce fighting. On the one hand, the central banks of the member countries of the European monetary system headed by the German central bank are determined to protect the exchange rate of the mark against the pound and the Italian lira, and constantly throw out the mark to buy the pound and the lira in the foreign exchange market. On the other hand, speculative forces in the foreign exchange market seem to be working together against the central bank. In the fierce battle in the foreign exchange market, the central bank has thrown out more than 20 billion dollars of marks, all of which have been eaten by market speculators. In the end, the contest ended in the failure of the European Central Bank to maintain a fixed exchange rate range between the mark and the pound and the lira, and the pound and the lira were forced to withdraw from the European monetary system. Many large venture capital groups earned tens of millions of dollars this month, and the most earned nearly one billion dollars. In fact, the seeds of this crisis in the European monetary system were planted from the day the European monetary system came into being.

1979 In March, at the initiative of the German Chancellor and the French President, eight member countries of the European economy (France, Germany, Italy, Belgium, Denmark, Ireland, Luxembourg and the Netherlands) decided to establish a European monetary system, in which the currencies of all countries fixed their exchange rates and floated against the US dollar. During the 10 years after the establishment of the European monetary system, its internal fixed exchange rate was constantly adjusted, which made its exchange rate system survive. 1In June, 1989, Spain announced its participation in the European Monetary System. 1990 10 was also announced by Britain, and the membership of the European Monetary System was expanded to 10.

The exchange rate system within the European monetary system is not completely fixed, and there are floating ranges of currency exchange rates among member countries. The currency of each member country has a central exchange rate with the European Monetary Unit (ECU), which fluctuates by 2.5% in the market, which is 6% for the pound. Because the mark is the most powerful currency in the European monetary system and the mark is one of the most important trading currencies in the international foreign exchange market, people often regard the exchange rate fluctuation between the currencies of the member countries of the European monetary system and the mark as the symbol of central bank intervention. The following is 1992 12 17. When the exchange rates of member countries fluctuate up and down, the central banks of the countries concerned must intervene. Since the British pound and lira withdrew on September 16, their exchange rate fluctuations with the mark will be determined when they return to the European monetary system.

The central banks of the member countries of the European monetary system intervene in the foreign exchange market by handing over 20% of the gold and dollar reserves to the European Monetary Cooperation Fund and converting them into a corresponding number of European monetary units. If the central bank of a member country needs to intervene in the exchange rate between its own currency and the mark, it can use its European currency unit or other forms of international reserves to buy its own currency from the central bank of another member country, thus intervening in the foreign exchange market.