Term:
Target zone; reference zone
Definition:
A wide zone of exchange rates, perhaps plus or minus 10 per cent, within which a currency can freely move against other currencies. Suggested at the New York Plaza Agreement at the Group of Five meeting in September 1985, and proposed by the French Treasury in February 1986, as a way to reduce major currency swings.
Domain:
Finance
Source:
World Bank: Glossary of Finance and Debt