All financial transactions under the European Monetary Agreement have been managed by the Bank for International Settlements. [1] The political changes made by the EMA have justified greater monetary convergence for the members of the agreement. [5] This allowed free exchange of country currencies under the agreement. [4] The effects of monetary convertibility were due to the lifting of numerous exchange restrictions and the lifting of import restrictions. [8] These measures meant fewer barriers to trade. This allowed the countries of the agreement to trade with greater freedom, thus improving the degree of economic integration throughout Europe. [16] As a result of the economic stability achieved through this level of monetary convertibility, a high level of employment and strong economic growth have been achieved both domestically and in the economy as a whole. [11] The activity and management of the Economic and Monetary Union (EMU) aims to support sustainable economic growth and high employment through economic and monetary policy. These are four main activities: the Economic and Monetary Union (EMU) is an important step in the integration of the EU`s economies. EMU, launched in 1992, includes the coordination of economic and fiscal policies, a common monetary policy and a common currency, the euro. While the 27 EU Member States are participating in the economic union, some countries have continued to promote integration and introduce the euro. Together, these countries form the eurozone.

This is why monetary policy is closely coordinated within the framework of EMU and is centralised and independent within the euro area. Before the European Monetary Agreement, the European Payments Union was in force. [1] It was a bilateral organization that allowed trade between European countries through an automatic credit system. [8] The European Payments Union credit system has been set up to automatically allow transfers and credit recognition between countries. [4] There were trade discriminations that still existed with these characteristics of the European Payments Union, which led to a growing stagnation of intra-European trade. [9] The EMA was then introduced to stimulate the trade and economic growth of the Member States. [10] It is to rebuild the various European economies, so that the whole European economy can recover from the situation created by the previous agreements and organisations. [11] One of the differences in the EMA with respect to the European Payments Union was better coordination of individual exchange rates, which are considered by each country to be monthly regulations. [4] This happened instead of using a single exchange rate to cover all countries for colonies. [5] In addition, the EMA was a multilateral system, allowing for a smaller amount of intermediate financing, a form of short-term borrowing, between countries compared to the European Payments Union.

[5] [11] The granting of loans and multilateral comparisons imposed by the EMA were neither automatic nor mandatory, which was a new aspect compared to previous organizations. [1] These amendments were implemented to achieve monetary convertibility and the overall objective of the EMA. [11] The EMA had short-term effects, but also played a role in the final creation of the European Union. [16] The European Union is the current monetary union, which has a common currency, the euro, and which has a high degree of cooperation and integration between the Member States. [13] This existence of a single currency and a central bank was contributed by the EMA.