Exchange rate regimes - Country rankings
* indicates monthly or quarterly data series
Exchange rate regimes, 2023:
The average for 2023 based on 186 countries was 5 index points. The highest value was in Albania: 7 index points and the lowest value was in Andorra: 1 index points. The indicator is available from 1999 to 2023. Below is a chart for all countries where data are available.Measure: index points; Source: International Monetary Fund
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* indicates monthly or quarterly data series
| Countries | Exchange rate regimes, 2023 | Global rank | Available data |
|---|---|---|---|
| Albania | 7 | 1 | 2008 - 2023 |
| Australia | 7 | 2 | 2008 - 2023 |
| Austria | 7 | 3 | 1999 - 2023 |
| Belarus | 7 | 4 | 2001 - 2023 |
| Belgium | 7 | 5 | 1999 - 2023 |
| Brazil | 7 | 6 | 2008 - 2023 |
| Canada | 7 | 7 | 2008 - 2023 |
| Chile | 7 | 8 | 2008 - 2023 |
| Colombia | 7 | 9 | 2008 - 2023 |
| Croatia | 7 | 10 | 2007 - 2023 |
| Cyprus | 7 | 11 | 1999 - 2023 |
| Czechia | 7 | 12 | 2008 - 2023 |
| Estonia | 7 | 13 | 1999 - 2023 |
| Finland | 7 | 14 | 1999 - 2023 |
| France | 7 | 15 | 1999 - 2023 |
| Georgia | 7 | 16 | 2008 - 2023 |
| Germany | 7 | 17 | 1999 - 2023 |
| Greece | 7 | 18 | 1999 - 2023 |
| Hungary | 7 | 19 | 1999 - 2023 |
| Iceland | 7 | 20 | 1999 - 2023 |
| Indonesia | 7 | 21 | 2008 - 2023 |
| Ireland | 7 | 22 | 1999 - 2023 |
| Israel | 7 | 23 | 1999 - 2023 |
| Italy | 7 | 24 | 1999 - 2023 |
| Japan | 7 | 25 | 2008 - 2023 |
| Kazakhstan | 7 | 26 | 2007 - 2023 |
| Latvia | 7 | 27 | 1999 - 2023 |
| Liberia | 7 | 28 | 2008 - 2023 |
| Lithuania | 7 | 29 | 1999 - 2023 |
| Luxembourg | 7 | 30 | 1999 - 2023 |
| Madagascar | 7 | 31 | 2008 - 2023 |
| Malaysia | 7 | 32 | 1999 - 2023 |
| Malta | 7 | 33 | 1999 - 2023 |
| Mexico | 7 | 34 | 2008 - 2023 |
| Moldova | 7 | 35 | 2008 - 2023 |
| Netherlands | 7 | 36 | 1999 - 2023 |
| New Zealand | 7 | 37 | 2008 - 2023 |
| Nigeria | 7 | 38 | 2006 - 2023 |
| Norway | 7 | 39 | 2008 - 2023 |
| Paraguay | 7 | 40 | 2008 - 2023 |
| Peru | 7 | 41 | 2008 - 2023 |
| Philippines | 7 | 42 | 2008 - 2023 |
| Poland | 7 | 43 | 2008 - 2023 |
| Portugal | 7 | 44 | 1999 - 2023 |
| Russia | 7 | 45 | 2007 - 2023 |
| Seychelles | 7 | 46 | 1999 - 2023 |
| Slovakia | 7 | 47 | 2005 - 2023 |
| Slovenia | 7 | 48 | 2002 - 2023 |
| Somalia | 7 | 49 | 2008 - 2023 |
| South Africa | 7 | 50 | 2008 - 2023 |
| South Korea | 7 | 51 | 2008 - 2023 |
| Spain | 7 | 52 | 1999 - 2023 |
| Suriname | 7 | 53 | 2000 - 2023 |
| Sweden | 7 | 54 | 2008 - 2023 |
| Switzerland | 7 | 55 | 2008 - 2023 |
| Thailand | 7 | 56 | 2008 - 2023 |
| Uganda | 7 | 57 | 2008 - 2023 |
| Ukraine | 7 | 58 | 2002 - 2023 |
| UK | 7 | 59 | 2008 - 2023 |
| Uruguay | 7 | 60 | 1999 - 2023 |
| USA | 7 | 61 | 2008 - 2023 |
| Yemen | 7 | 62 | 2006 - 2023 |
| Zambia | 7 | 63 | 2008 - 2023 |
| Algeria | 6 | 64 | 2008 - 2023 |
| Argentina | 6 | 65 | 1999 - 2023 |
| Armenia | 6 | 66 | 2008 - 2023 |
| Azerbaijan | 6 | 67 | 2005 - 2023 |
| Bolivia | 6 | 68 | 1999 - 2023 |
| Burma | 6 | 69 | 1999 - 2023 |
| DR Congo | 6 | 70 | 2008 - 2023 |
| Egypt | 6 | 71 | 1999 - 2023 |
| Guinea | 6 | 72 | 2002 - 2023 |
| Guyana | 6 | 73 | 2005 - 2023 |
| Honduras | 6 | 74 | 1999 - 2023 |
| India | 6 | 75 | 2008 - 2023 |
| Iran | 6 | 76 | 1999 - 2023 |
| Jamaica | 6 | 77 | 2008 - 2023 |
| Kuwait | 6 | 78 | 1999 - 2023 |
| Lebanon | 6 | 79 | 1999 - 2023 |
| Malawi | 6 | 80 | 2007 - 2023 |
| Maldives | 6 | 81 | 1999 - 2023 |
| Mauritania | 6 | 82 | 2005 - 2023 |
| Mauritius | 6 | 83 | 2008 - 2023 |
| Mozambique | 6 | 84 | 2008 - 2023 |
| North Macedonia | 6 | 85 | 1999 - 2023 |
| Pakistan | 6 | 86 | 1999 - 2023 |
| Romania | 6 | 87 | 2001 - 2023 |
| Serbia | 6 | 88 | 2005 - 2023 |
| Sierra Leone | 6 | 89 | 2006 - 2023 |
| Sri Lanka | 6 | 90 | 1999 - 2023 |
| Sudan | 6 | 91 | 2002 - 2023 |
| Syria | 6 | 92 | 1999 - 2023 |
| Tajikistan | 6 | 93 | 2007 - 2023 |
| Tonga | 6 | 94 | 1999 - 2023 |
| Tr.&Tobago | 6 | 95 | 1999 - 2023 |
| Vanuatu | 6 | 96 | 1999 - 2023 |
| Venezuela | 6 | 97 | 1999 - 2023 |
| Zimbabwe | 6 | 98 | 1999 - 2023 |
| Afghanistan | 5 | 99 | 2008 - 2023 |
| Angola | 5 | 100 | 2006 - 2023 |
| Bangladesh | 5 | 101 | 1999 - 2023 |
| Botswana | 5 | 102 | 1999 - 2023 |
| Burundi | 5 | 103 | 2008 - 2023 |
| Cambodia | 5 | 104 | 2008 - 2023 |
| China | 5 | 105 | 1999 - 2023 |
| Domin. Rep. | 5 | 106 | 2008 - 2023 |
| Ethiopia | 5 | 107 | 2006 - 2023 |
| Gambia | 5 | 108 | 2008 - 2023 |
| Ghana | 5 | 109 | 2008 - 2023 |
| Guatemala | 5 | 110 | 2008 - 2023 |
| Haiti | 5 | 111 | 2008 - 2023 |
| Kenya | 5 | 112 | 2008 - 2023 |
| Kyrgyzstan | 5 | 113 | 2008 - 2023 |
| Laos | 5 | 114 | 2008 - 2023 |
| Mongolia | 5 | 115 | 2006 - 2023 |
| Nicaragua | 5 | 116 | 1999 - 2023 |
| Papua N.G. | 5 | 117 | 2008 - 2023 |
| Rwanda | 5 | 118 | 2006 - 2023 |
| Singapore | 5 | 119 | 2008 - 2023 |
| Solomon Isl. | 5 | 120 | 1999 - 2023 |
| Tanzania | 5 | 121 | 2008 - 2023 |
| Tunisia | 5 | 122 | 1999 - 2023 |
| Turkey | 5 | 123 | 1999 - 2023 |
| Uzbekistan | 5 | 124 | 2006 - 2023 |
| Vietnam | 5 | 125 | 1999 - 2023 |
| Morocco | 4 | 126 | 1999 - 2023 |
| Aruba | 3 | 127 | 1999 - 2023 |
| Bahamas | 3 | 128 | 1999 - 2023 |
| Bahrain | 3 | 129 | 1999 - 2023 |
| Barbados | 3 | 130 | 1999 - 2023 |
| Belize | 3 | 131 | 1999 - 2023 |
| Benin | 3 | 132 | 1999 - 2023 |
| Bhutan | 3 | 133 | 1999 - 2023 |
| Burkina Faso | 3 | 134 | 1999 - 2023 |
| Cameroon | 3 | 135 | 1999 - 2023 |
| Cape Verde | 3 | 136 | 1999 - 2023 |
| C.A. Republic | 3 | 137 | 1999 - 2023 |
| Chad | 3 | 138 | 1999 - 2023 |
| Comoros | 3 | 139 | 1999 - 2023 |
| Denmark | 3 | 140 | 1999 - 2023 |
| Eq. Guinea | 3 | 141 | 1999 - 2023 |
| Eritrea | 3 | 142 | 2000 - 2023 |
| Fiji | 3 | 143 | 1999 - 2023 |
| Gabon | 3 | 144 | 1999 - 2023 |
| G.-Bissau | 3 | 145 | 1999 - 2023 |
| Iraq | 3 | 146 | 1999 - 2023 |
| Ivory Coast | 3 | 147 | 1999 - 2023 |
| Jordan | 3 | 148 | 1999 - 2023 |
| Lesotho | 3 | 149 | 1999 - 2023 |
| Libya | 3 | 150 | 1999 - 2023 |
| Mali | 3 | 151 | 1999 - 2023 |
| Namibia | 3 | 152 | 1999 - 2023 |
| Nepal | 3 | 153 | 1999 - 2023 |
| Niger | 3 | 154 | 1999 - 2023 |
| Oman | 3 | 155 | 1999 - 2023 |
| Qatar | 3 | 156 | 1999 - 2023 |
| R. of Congo | 3 | 157 | 1999 - 2023 |
| Samoa | 3 | 158 | 1999 - 2023 |
| S.T.&Principe | 3 | 159 | 2008 - 2023 |
| Saudi Arabia | 3 | 160 | 1999 - 2023 |
| Senegal | 3 | 161 | 1999 - 2023 |
| Swaziland | 3 | 162 | 1999 - 2023 |
| Togo | 3 | 163 | 1999 - 2023 |
| Turkmenistan | 3 | 164 | 1999 - 2023 |
| UA Emirates | 3 | 165 | 1999 - 2023 |
| Ant.& Barb. | 2 | 166 | 1999 - 2023 |
| Bosnia & Herz. | 2 | 167 | 1999 - 2023 |
| Brunei | 2 | 168 | 1999 - 2023 |
| Bulgaria | 2 | 169 | 1999 - 2023 |
| Djibouti | 2 | 170 | 1999 - 2023 |
| Dominica | 2 | 171 | 1999 - 2023 |
| Grenada | 2 | 172 | 1999 - 2023 |
| Hong Kong | 2 | 173 | 1999 - 2023 |
| Macao | 2 | 174 | 2021 - 2023 |
| Saint Lucia | 2 | 175 | 1999 - 2023 |
| St. Vincent & ... | 2 | 176 | 1999 - 2023 |
| Andorra | 1 | 177 | 2020 - 2023 |
| Ecuador | 1 | 178 | 1999 - 2023 |
| El Salvador | 1 | 179 | 1999 - 2023 |
| Kiribati | 1 | 180 | 1999 - 2023 |
| Micronesia | 1 | 181 | 1999 - 2023 |
| Montenegro | 1 | 182 | 2006 - 2023 |
| Palau | 1 | 183 | 1999 - 2023 |
| Panama | 1 | 184 | 1999 - 2023 |
| San Marino | 1 | 185 | 1999 - 2023 |
| Tuvalu | 1 | 186 | 2010 - 2023 |
Definition: The data are from the IMF Annual Reports on Exchange Arrangements and Exchange Restrictions. A higher value of the index indicates more exchange rate flexibility: 1 = the country has no independent legal tender; 2 = currency board; 3 = conventional peg; 4 = target zone; 5 = crawling peg; 6 = other managed exchange rate regimes; 7 = floating regime. The IMF categorization does not include currency unions. Instead, it assigns to the member country the regime of the union it is a part of. For example, all EMU members are assigned a floating exchange rate regime. The data begin with the latest change of the IMF categorization in 2008.
What explains the differences in exchange rate regimes across countries
Small open economies often opt for fixed exchange rate regimes. These countries import many of the goods they consume and exchange rate volatility would therefore translate into domestic price volatility. High, erratic, and unpredictable inflation is not good for economic growth and overall societal welfare. In fact, sometimes countries fix their exchange rates with the primary goal of sustaining low and stable inflation. Also, small economies often export a large fraction of what they produce and stability of the exchange rate reduces uncertainty for exporters. That is supposed to stimulate exports and enhance economic growth.
Large economies, in contrast, import and export a smaller share of their GDP and are therefore more isolated from currency risk. In addition, they may find it more difficult to maintain a fixed exchange rate even if they wanted to. A fixed exchange rate regime requires a substantial level of foreign exchange reserves so that the central bank can intervene in the foreign exchange market when necessary. When a currency market is vast, countries cannot counter currency fluctuations with limited foreign exchange reserves.
There are, of course, variants on those two basic regimes. Many countries do not fix their exchange rates but manage them within narrow bands or intervene occasionally to prevent large fluctuations. Some countries abandon their currencies altogether and join into currency unions or dollarize in an effort to promote trade and sustain financial stability.
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Small open economies often opt for fixed exchange rate regimes. These countries import many of the goods they consume and exchange rate volatility would therefore translate into domestic price volatility. High, erratic, and unpredictable inflation is not good for economic growth and overall societal welfare. In fact, sometimes countries fix their exchange rates with the primary goal of sustaining low and stable inflation. Also, small economies often export a large fraction of what they produce and stability of the exchange rate reduces uncertainty for exporters. That is supposed to stimulate exports and enhance economic growth.
Large economies, in contrast, import and export a smaller share of their GDP and are therefore more isolated from currency risk. In addition, they may find it more difficult to maintain a fixed exchange rate even if they wanted to. A fixed exchange rate regime requires a substantial level of foreign exchange reserves so that the central bank can intervene in the foreign exchange market when necessary. When a currency market is vast, countries cannot counter currency fluctuations with limited foreign exchange reserves.
There are, of course, variants on those two basic regimes. Many countries do not fix their exchange rates but manage them within narrow bands or intervene occasionally to prevent large fluctuations. Some countries abandon their currencies altogether and join into currency unions or dollarize in an effort to promote trade and sustain financial stability.
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Exchange rate regimes in Europe Exchange rate regimes in Asia Exchange rate regimes in Africa Exchange rate regimes in North America Exchange rate regimes in South America Exchange rate regimes in Australia/Oceania Exchange rate regimes in the European union Exchange rate regimes in Sub Sahara Africa Exchange rate regimes in MENA Exchange rate regimes in South East Asia Exchange rate regimes in Latin America