# CI2020032EN.01000101.xml

| 1.2.2020 | EN | Official Journal of the European Union | CI 32/1 |
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1.2.2020

EN

Official Journal of the European Union

CI 32/1

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AGREEMENT

of 22 January 2020

between the European Central Bank and the national central banks of the Member States outside the euro area amending the Agreement of 16 March 2006 between the European Central Bank and the national central banks of the Member States outside the euro area laying down the operating procedures for an exchange rate mechanism in stage three of Economic and Monetary Union

(2020/C 32 I/01)

| 1. | Българска народна банка (Bulgarian National Bank) |
| --- | --- |
| 1, Knyaz Alexander I Sq. |
| 1000 София/Sofia |
| БЪЛГАРИЯ/BULGARIA |

1.

Българска народна банка (Bulgarian National Bank)

1, Knyaz Alexander I Sq.

1000 София/Sofia

БЪЛГАРИЯ/BULGARIA

| Česká národní banka |
| --- |
| Na Příkopě 28 |
| 115 03 Praha 1 |
| ČESKO |

Česká národní banka

Na Příkopě 28

115 03 Praha 1

ČESKO

| Danmarks Nationalbank |
| --- |
| Havnegade 5 |
| 1093 København K |
| DANMARK |

Danmarks Nationalbank

Havnegade 5

1093 København K

DANMARK

| Hrvatska narodna banka |
| --- |
| Trg hrvatskih velikana 3 |
| 10002 Zagreb |
| HRVATSKA |

Hrvatska narodna banka

Trg hrvatskih velikana 3

10002 Zagreb

HRVATSKA

| Magyar Nemzeti Bank |
| --- |
| Budapest |
| Szabadság tér 8/9 |
| 1054 |
| MAGYARORSZÁG |

Magyar Nemzeti Bank

Budapest

Szabadság tér 8/9

1054

MAGYARORSZÁG

| Narodowy Bank Polski |
| --- |
| ulica Świętokrzyska 11/21 |
| 00-919 Warszawa |
| POLSKA |

Narodowy Bank Polski

ulica Świętokrzyska 11/21

00-919 Warszawa

POLSKA

| Banca Naţională a României |
| --- |
| Strada Lipscani nr. 25, sector 3 |
| 030031 București |
| ROMÂNIA |

Banca Naţională a României

Strada Lipscani nr. 25, sector 3

030031 București

ROMÂNIA

| Sveriges Riksbank |
| --- |
| Brunkebergstorg 11 |
| 103 37 Stockholm |
| SVERIGE |

Sveriges Riksbank

Brunkebergstorg 11

103 37 Stockholm

SVERIGE

| Bank of England |
| --- |
| Threadneedle Street |
| London EC2R 8AH |
| UNITED KINGDOM |

Bank of England

Threadneedle Street

London EC2R 8AH

UNITED KINGDOM

and

| 2. | the European Central Bank (ECB) |
| --- | --- |

2.

(hereinafter the ‘Parties’)

Whereas:

| 1. | The European Council in its Resolution of 16 June 1997 (hereinafter the ‘Resolution’) agreed to set up an exchange rate mechanism (hereinafter ‘ERM II’) when the third stage of Economic and Monetary Union began on 1 January 1999. Under the terms of the Resolution, ERM II is designed to help ensure that non-euro area Member States participating in ERM II orient their policies to stability, foster convergence and thereby help the non-euro area Member States in their efforts to adopt the euro. As referred to in the recitals to the Resolution, the operating procedures of ERM II were to be laid down in an agreement between the European Central Bank and the national central banks of the Member States outside the euro area. |
| --- | --- |

1.

The European Council in its Resolution of 16 June 1997 (hereinafter the ‘Resolution’) agreed to set up an exchange rate mechanism (hereinafter ‘ERM II’) when the third stage of Economic and Monetary Union began on 1 January 1999. Under the terms of the Resolution, ERM II is designed to help ensure that non-euro area Member States participating in ERM II orient their policies to stability, foster convergence and thereby help the non-euro area Member States in their efforts to adopt the euro. As referred to in the recitals to the Resolution, the operating procedures of ERM II were to be laid down in an agreement between the European Central Bank and the national central banks of the Member States outside the euro area.

| 2. | The Bank of England is party to the Agreement of 16 March 2006 between the European Central Bank and the national central banks of the Member States outside the euro area laying down the operating procedures for an exchange rate mechanism in stage three of Economic and Monetary Union (1), as amended by the Agreement of 21 December 2006 (2), by the Agreement of 14 December 2007 (3), by the Agreement of 8 December 2008 (4), by the Agreement of 13 December 2010 (5), by the Agreement of 21 June 2013 (6), by the Agreement of 6 December 2013 (7) and by the Agreement of 13 November 2014 (8) (hereinafter collectively referred to as the ‘ERM II Central Bank Agreement’). |
| --- | --- |

2.

The Bank of England is party to the Agreement of 16 March 2006 between the European Central Bank and the national central banks of the Member States outside the euro area laying down the operating procedures for an exchange rate mechanism in stage three of Economic and Monetary Union (1), as amended by the Agreement of 21 December 2006 (2), by the Agreement of 14 December 2007 (3), by the Agreement of 8 December 2008 (4), by the Agreement of 13 December 2010 (5), by the Agreement of 21 June 2013 (6), by the Agreement of 6 December 2013 (7) and by the Agreement of 13 November 2014 (8) (hereinafter collectively referred to as the ‘ERM II Central Bank Agreement’).

| 3. | On 29 March 2017, the United Kingdom of Great Britain and Northern Ireland (the ‘United Kingdom’) submitted the notification of its intention to withdraw from the European Union pursuant to Article 50 of the Treaty on European Union. According to this Article, the Treaty on European Union and the Treaty on the Functioning of the European Union are to cease to apply to the United Kingdom from the date of entry into force of a withdrawal agreement or, failing that, two years after that notification, i.e. from 30 March 2019, unless the European Council, in agreement with the United Kingdom, unanimously decides to extend that period. |
| --- | --- |

3.

On 29 March 2017, the United Kingdom of Great Britain and Northern Ireland (the ‘United Kingdom’) submitted the notification of its intention to withdraw from the European Union pursuant to Article 50 of the Treaty on European Union. According to this Article, the Treaty on European Union and the Treaty on the Functioning of the European Union are to cease to apply to the United Kingdom from the date of entry into force of a withdrawal agreement or, failing that, two years after that notification, i.e. from 30 March 2019, unless the European Council, in agreement with the United Kingdom, unanimously decides to extend that period.

| 4. | By European Council Decision (EU) 2019/476 taken in agreement with the United Kingdom of 22 March 2019 extending the period under Article 50(3) TEU (9), among others, the European Council decided to extend that period until 12 April 2019. |
| --- | --- |

4.

By European Council Decision (EU) 2019/476 taken in agreement with the United Kingdom of 22 March 2019 extending the period under Article 50(3) TEU (9), among others, the European Council decided to extend that period until 12 April 2019.

| 5. | By European Council Decision (EU) 2019/584 taken in agreement with the United Kingdom of 11 April 2019 extending the period under Article 50(3) TEU (10), among others, the European Council decided to further extend that period, as extended by European Council Decision (EU) 2019/476, until 31 October 2019. |
| --- | --- |

5.

By European Council Decision (EU) 2019/584 taken in agreement with the United Kingdom of 11 April 2019 extending the period under Article 50(3) TEU (10), among others, the European Council decided to further extend that period, as extended by European Council Decision (EU) 2019/476, until 31 October 2019.

| 6. | By European Council Decision (EU) 2019/1810 taken in agreement with the United Kingdom of 29 October 2019 extending the period under Article 50(3) TEU (11), among others, the European Council decided to further extend that period until 31 January 2020. |
| --- | --- |

6.

By European Council Decision (EU) 2019/1810 taken in agreement with the United Kingdom of 29 October 2019 extending the period under Article 50(3) TEU (11), among others, the European Council decided to further extend that period until 31 January 2020.

| 7. | Following the withdrawal of the United Kingdom from the European Union from 1 February 2020, the Bank of England (BoE) ceases to be a national central bank of a Member State. Therefore, as from that moment, the BoE cannot be a party to the ERM II Central Bank Agreement. It is necessary to amend the ERM II Central Bank Agreement to reflect the departure of the BoE from the ERM II Central Bank Agreement. It is also necessary to replace Annex II ‘Ceilings on Access to the Very Short-Term Financing Facility Referred to in Articles 8, 10 and 11 of the Central Bank Agreement’ (hereinafter ‘Annex II’) to take account of this departure. |
| --- | --- |

7.

Following the withdrawal of the United Kingdom from the European Union from 1 February 2020, the Bank of England (BoE) ceases to be a national central bank of a Member State. Therefore, as from that moment, the BoE cannot be a party to the ERM II Central Bank Agreement. It is necessary to amend the ERM II Central Bank Agreement to reflect the departure of the BoE from the ERM II Central Bank Agreement. It is also necessary to replace Annex II ‘Ceilings on Access to the Very Short-Term Financing Facility Referred to in Articles 8, 10 and 11 of the Central Bank Agreement’ (hereinafter ‘Annex II’) to take account of this departure.

| 8. | This Agreement should only apply from 1 February 2020 if, as at that date, the BoE is not a national central bank of a Member State, |
| --- | --- |

8.

This Agreement should only apply from 1 February 2020 if, as at that date, the BoE is not a national central bank of a Member State,

HAVE AGREED AS FOLLOWS:

Article 1

Amendment to the ERM II Central Bank Agreement in view of the withdrawal of the United Kingdom from the European Union

The Bank of England shall no longer be party to the ERM II Central Bank Agreement from 1 February 2020.

Article 2

Replacement of Annex II to the ERM II Central Bank Agreement

Annex II to the ERM II Central Bank Agreement is replaced by the text set out in the Annex to this Agreement.

Article 3

Final provisions

1.   This Agreement amends the ERM II Central Bank Agreement with effect from 1 February 2020 unless, as at that date, the BoE continues to be a national central bank of a Member State.

2.   This Agreement shall be drawn up in English and duly signed by the Parties’ authorised representatives. The ECB, which shall retain the original Agreement, shall send a certified copy of the original Agreement to each euro area and non-euro area national central bank. The Agreement shall be published in the Official Journal of the European Union.

Done at Frankfurt am Main, 22 January 2020.

For

Българска народна банка (Bulgarian National Bank)

...

For

Narodowy Bank Polski

...

For

Česká národní banka

...

For

Banca Naţională a României

...

For

Danmarks Nationalbank

...

For

Sveriges Riksbank

...

For

Hrvatska narodna banka

...

For

the Bank of England

...

For

the Magyar Nemzeti Bank

...

For

the European Central BANK

...

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(1)  OJ C 73, 25.3.2006, p. 21.

1

(2)  OJ C 14, 20.1.2007, p. 6.

2

(3)  OJ C 319, 29.12.2007, p. 7.

3

(4)  OJ C 16, 22.1.2009, p. 10.

4

(5)  OJ C 5, 8.1.2011, p. 3.

5

(6)  OJ C 187, 29.6.2013, p. 1.

6

(7)  OJ C 17, 21.1.2014, p. 1.

7

(8)  OJ C 64, 21.2.2015, p. 1.

8

(9)  OJ L 80 I, 22.3.2019, p. 1

9

(10)  OJ L 101, 11.4.2019, p 1

10

(11)  OJ L 278 l, 30.10.2019, p. 1.

11

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ANNEX

CEILINGS ON ACCESS TO THE VERY SHORT-TERM FINANCING FACILITY REFERRED TO IN ARTICLES 8, 10 AND 11 OF THE ERM II CENTRAL BANK AGREEMENT

with effect from 1 February 2020

| (EUR million) |
| --- |
| Central banks party to this Agreement | Ceilings (1) |
| Българска народна банка (Bulgarian National Bank) | 780 |
| Česká národní banka | 1 260 |
| Danmarks Nationalbank | 1 190 |
| Hrvatska narodna banka | 600 |
| Magyar Nemzeti Bank | 1 080 |
| Narodowy Bank Polski | 3 480 |
| Banca Naţională a României | 1 760 |
| Sveriges Riksbank | 1 850 |
| European Central Bank | nil |

(EUR million)

Central banks party to this Agreement

Ceilings (1)

Българска народна банка (Bulgarian National Bank)

780

Česká národní banka

1 260

Danmarks Nationalbank

1 190

Hrvatska narodna banka

600

Magyar Nemzeti Bank

1 080

Narodowy Bank Polski

3 480

Banca Naţională a României

1 760

Sveriges Riksbank

1 850

European Central Bank

nil

| Euro area national central banks | Ceilings |
| --- | --- |
| Nationale Bank van België/Banque Nationale de Belgique | nil |
| Deutsche Bundesbank | nil |
| Eesti Pank | nil |
| Central Bank of Ireland | nil |
| Bank of Greece | nil |
| Banco de España | nil |
| Banque de France | nil |
| Banca d’Italia | nil |
| Central Bank of Cyprus | nil |
| Latvijas Banka | nil |
| Lietuvos Bankas | nil |
| Banque centrale du Luxembourg | nil |
| Central Bank of Malta | nil |
| De Nederlandsche Bank | nil |
| Oesterreichische Nationalbank | nil |
| Banco de Portugal | nil |
| Banka Slovenije | nil |
| Národná banka Slovenska | nil |
| Suomen Pankki | nil |

Euro area national central banks

Ceilings

Nationale Bank van België/Banque Nationale de Belgique

nil

Deutsche Bundesbank

nil

Eesti Pank

nil

Central Bank of Ireland

nil

Bank of Greece

nil

Banco de España

nil

Banque de France

nil

Banca d’Italia

nil

Central Bank of Cyprus

nil

Latvijas Banka

nil

Lietuvos Bankas

nil

Banque centrale du Luxembourg

nil

Central Bank of Malta

nil

De Nederlandsche Bank

nil

Oesterreichische Nationalbank

nil

Banco de Portugal

nil

Banka Slovenije

nil

Národná banka Slovenska

nil

Suomen Pankki

nil

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(1)  The amounts indicated are notional for central banks which do not participate in ERM II.

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