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European Monetary Agreement (E.M.A.)
 

 

This was formed in 1958 to replace the European Payments Union (E.P.U.). It served much the same function as had the E.P.U. with regard to the clearing of balances, but with the advent of free convertibility, settlements had now to be effected in gold or freely convertible currencies. The credit facilities afforded by the old E.P.U. were also abolished in favour of a special European fund, tied in with the I.M.F., to cover temporary balance of payments problems of member countries.

Reference: The Penguin Business Dictionary, 3rd edt.