July 1, 2006
Tallinn – Estonia has met another of the EU’s criteria for accession to the common European currency, having successfully been a member of the ERM2 exchange rate mechanism for two years, BNS news agency reported.
Bank of Estonia vice-governor Marten Ross said the exchange rate of the kroon has been unchanged in the ERM2 framework, and the present euro-kroon exchange rate is suitable for transition to the common European currency.
The equalisation of Estonian interest rates with those of the euro zone confirms the credibility of the kroon, BNS said. Until accession to the euro, Estonia will remain a member of the ERM2 or in the so-called ‘euro waiting room’, the central bank said.