Did entry in ERM II require the transfer of reserves from the Central Bank of Malta to the European Central Bank?
No. The national central banks of EU Member States only transfer part of their foreign reserve assets to the European Central Bank upon joining the euro area. This follows from Article 43 of the European System of Central Banks Statute which excludes ERM II participants and other non-euro members from the requirement to transfer foreign reserve assets to the European Central Bank.
Related Questions
- Did any adjustments need to be made to existing fixed interest rate commitments during the period Malta spent in ERM II?
- Did entry in ERM II mean that the Central Bank of Malta ceased to set monetary policy in Malta?
- Did Malta’s entry in ERM II mean that the euro has became its national or legal tender currency?
