How the european Single Currency evolved Capital controls and frequent realignments were essential ingredients in maintaining the system until the mid-1980s After the mid-1980s. these controls have been abolished as part of the Eus wider "1992 program of market unification During the currency crisis that broke out in September 1992, Britain and Italy allowed their currencies to float In August 1993 most EMS currency bands were widened to t 15% in the face of continuing speculative attacks Copyright C 2003 Pearson Education, Inc Slide 20-8Copyright © 2003 Pearson Education, Inc. Slide 20-8 • Capital controls and frequent realignments were essential ingredients in maintaining the system until the mid-1980s. – After the mid-1980s, these controls have been abolished as part of the EU’s wider “1992” program of market unification. • During the currency crisis that broke out in September 1992, Britain and Italy allowed their currencies to float. • In August 1993 most EMS currency bands were widened to ± 15% in the face of continuing speculative attacks. How the European Single Currency Evolved