In ERM II, the exchange rate of a Member State which is not part of the euro area may vary against the euro within defined limits. Accession to ERM II is based on an agreement between the finance ministers of the euro area Member States, the European Central Bank (ECB) and the ministers and governors of the Non-euro area Member States. The agreement includes: “The agreement on the participation of the Bulgarian Lev in ERM II is also accompanied by a firm commitment by the Bulgarian authorities to pursue a sound economic policy with a view to maintaining economic and financial stability and achieving a high degree of sustainable economic convergence,” the ECB said. “At the request of the Bulgarian authorities, the Finance Ministers of the European Union Member States of the euro area, the President of the European Central Bank and the Finance Ministers and Governors of the Central Banks of Denmark and Bulgaria have decided by mutual agreement to include the Bulgarian lev in the ERM,” the ECB said in a statement. The agreement on the participation of the Croatian Kuna in ERM II is accompanied by Croatia`s commitment to join the Banking Union simultaneously. The agreement on the participation of the LEV in ERM II is based on Bulgaria`s commitment to join both the Banking Union and ERM II and on the implementation by the Bulgarian authorities of a series of measures described in their Memorandum of Understanding of 29 June 2018, which are essential for a smooth transition to and participation in ERM II. The banking supervisors of the ECB and the Bulgarian National Bank are taking preparatory steps to ensure a smooth transition to the new supervisory system. The Parties to ERM II welcome the positive assessment of the implementation of these commitments by the European Central Bank and the European Commission. On 10 July 2020, just over two years after Bulgaria officially announced its intention to join Exchange Rate Mechanism II (ERM II) and the Banking Union, the European Central Bank (ECB) and the Bulgarian National Bank (NBB) announced two very important decisions: the chart below provides a comprehensive summary of all exchange rate regimes applicable to EU members. since the creation on 13 March 1979 of the European Monetary System, with its exchange rate mechanism and its new common currency, the ecu. . .