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Snake in the tunnel

An expression for an agreement by a group of countries in a flexible exchange rate system to intervene in the foreign exchange market to hold their currencies closer to each other than the generally permitted maximum deviation. The general limit is the tunnel; the closer limit is the snake. This system was operated by some European countries before the adoption of the European Monetary System in 1979.

Reference: Oxford Press Dictonary of Economics, 5th edt.