Currency regimes In practice,there is a gradual change from fixed to floating.IMF uses eight different classifications of exchange rate regimes.For instance,Denmark has pegged exchange rates within horizontal bands Countries such as Ecuador and Panama have exchange arrangements with no separate legal tender (dollarization) Countries such as the US,the UK,Japan,and Sweden have independently floating currencies 99 Currency regimes In practice, there is a gradual change from fixed to floating. IMF uses eight different classifications of exchange rate regimes. For instance, Denmark has pegged exchange rates within horizontal bands Countries such as Ecuador and Panama have exchange arrangements with no separate legal tender (dollarization) Countries such as the US, the UK, Japan, and Sweden have independently floating currencies