Exchange rate relations between the euro and non-EU Currencies 
 

As regards relations between the euro and non-EU currencies, Article 109 of the Treaty provides that the Council of Ministers may, acting unanimously on a recommendation from the ECB or from the Commission, conclude formal agreements on an exchange rate system for the euro in relation to non-Community currencies, having first consulted the ECB (where appropriate) in an endeavour to reach a consensus consistent with the objective of price stability, and having also consulted the European Parliament.  

In the absence of such an exchange rate system in relation to one or more non-Community currencies, the Council, acting by a qualified majority, either on a recommendation from the Commission and after consulting the ECB or on a recommendation from the ECB, may formulate general orientations for exchange rate policy in relation to these currencies. These general orientations shall be without prejudice to the primary objective of the ESCB to maintain price stability.  

The European Council meeting in Luxembourg in December 1997 agreed that general orientations for exchange rate policy in relation to one or more non-Community currencies will be formulated only in exceptional circumstances.