by the governors of the four non - euro area national central banks. the signing of this agreement by the latter parties implies their acceptance of the operating procedures. it does not, however, imply their participation in erm ii. for the currency of each member state participating in the mechanism, a central rate against the euro and a standard fluctuation band of ±15 % will be defined, in principle supported by automatic unlimited intervention at the margins, with very short - term financing available. however, the ecb and the participating non - euro area national central banks could suspend automatic intervention if this were to conflict with their primary objective of maintaining price stability. in line with the resolution of the european council, exchange rate policy co - operation may be further strengthened, for example by allowing closer exchange rate links between the euro and other currencies in the exchange rate mechanism, where, and to the extent that, this is appropriate in the light of progress towards convergence. 2. general documentation on escb monetary policy : instruments and procedures last friday, 18 september 1998, the ecb published a report entitled “ the single monetary policy in stage three : general documentation on escb monetary policy instruments and procedures ”. this report contains a detailed description of the monetary policy instruments and procedures to be applied by the escb in stage three of emu. hence it provides credit institutions with the information they need in order to prepare for participation in escb monetary policy operations as from 1 january 1999. the report expands upon and updates the material contained in an earlier version which was published by the emi on 23 september 1997. the report first sets out the criteria to be fulfilled by credit institutions in order to be eligible as counterparties to escb monetary policy operations. it then presents the features of the different types of open market operations which might be conducted by the escb and the escb ’ s two standing facilities ( the marginal lending facility and the deposit facility ). the report also contains a detailed description of the procedures related to the various types of operations, and specifies the eligibility criteria and the risk control measures to be applied to assets underlying the escb ’ s liquidity - providing operations. moreover, the report includes the description of the features of the escb ’ s minimum reserve system and sets out specific provisions to be applied for the escb ’ s monetary policy instruments and procedures in the transition to stage three. in this context i should also mention that on 11 september 1998 the governing council of the ecb endorsed the statistical

decisions and the rationale behind them. in addition to press conferences, the public statements of the members of the governing council and the ecb ’ s regular publications will also contribute to achieving this goal. in its regular publications, for example, the ecb will report thoroughly on all aspects relevant to the conduct of the single monetary policy in the euro area. in particular, they will supply a detailed analysis of the developments upon which the respective monetary policy decisions are based. apart from the publications foreseen in the treaty, of which the annual report and the quarterly report are the most important ones, the ecb intends to publish a monthly bulletin. in order to give a well - rounded picture i should like to draw your attention to one of the most recent ecb publications, the “ report on electronic money ”, before i turn to our schedule for the remainder of 1998. * the “ report on electronic money ” on 31 august 1998 the ecb published a “ report on electronic money ”. the report deepens the analysis of the implications of prepaid cards conducted by the emi in 1994 and extends it to new forms of electronic money, i. e. software - based electronic money products which have since started to evolve. the main findings of the study were published in the opinion of the emi council on the issuance of electronic money, which is contained in chapter iii of the emi ’ s annual report 1997. although electronic money is not a widespread phenomenon at present, it is likely to have significant implications for monetary policy in the future. in this regard, it must be ensured that, in particular, price stability and the unit - of - account function of money are not put at risk. there are a number of additional regulatory concerns regarding electronic money which also have to be taken into account, such as the efficient functioning of payment systems and confidence in payment instruments, the protection of customers and merchants, the stability of financial markets and protection against criminal abuse. with a view to ensuring monetary policy effectiveness and a level playing - field, and in order to address the regulatory concerns i have just outlined, the ecb regards it as essential that certain minimum requirements be fulfilled ( see chapter 4 of the report ). i would like to stress in this context that the ecb follows with interest and close attention the european commission ’ s work on a directive on electronic money and expects to be officially consulted in due time. b. schedule for the remainder of 1998 given the huge volume of work to be completed during the