glossario

The Eurosystem conducts foreign exchange operations in accordance with the Treaty establishing the European Community. The Bank of Italy may be called upon to intervene on the foreign exchange market. It may also be asked to intervene in connection with the Exchange Rate Mechanism (ERM II), which sets out the main lines of cooperation in exchange rate policies between the European Central Bank (ECB) and the central banks of the European Union (EU) Member States that have not adopted the euro. It can also engage in foreign exchange operations to alter the composition of its foreign currency reserves in order to achieve the best balance between risk and return.