Figure 2. Decision Process for Revised Classification Methodology De jure Ye arrangement De facto= De jure confirmed Ye market Floating Stabilized or crawl-like Yes De facto soft Yo Intervention peg No Other managed arrangement〔 residua) Free floating 1/The figure provides a stylized representation, and includes only the key decisions. The decisions in the classification process begin at the top of the figure and proceed downward Any arrangement that does not fall into any of the categories described above is assigned to the category other managed arrangements. This is a new residual category. As indicated in Table 1, less than 10 percent of the IMF's membership fell into the residual category at end April 2008. In the main, this category captures countries in which the de facto and the de jure arrangement differ, which manage their exchange rates but are not floating, and which exhibit frequent or irregular changes in policies The de facto classification should accurately reflect policy outcomes over the relevant assessment period. However, judgment and consultation with member country authorities are being used to avoid spurious or noisy" changes in classification in borderline cases. To this end, the usual assessment period can be lengthened by up to three months In particular, this category is not equivalent to the managed float category under the existing methodology9 Figure 2. Decision Process for Revised Classification Methodology 1/ 1/ The figure provides a stylized representation, and includes only the key decisions. The decisions in the classification process begin at the top of the figure and proceed downwards. Any arrangement that does not fall into any of the categories described above is assigned to the category other managed arrangements. This is a new residual category. As indicated in Table 1, less than 10 percent of the IMF’s membership fell into the residual category at end￾April 2008.6 In the main, this category captures countries in which the de facto and the de jure arrangement differ, which manage their exchange rates but are not floating, and which exhibit frequent or irregular changes in policies. The de facto classification should accurately reflect policy outcomes over the relevant assessment period. However, judgment and consultation with member country authorities are being used to avoid spurious or “noisy” changes in classification in borderline cases. To this end, the usual assessment period can be lengthened by up to three months. 6 In particular, this category is not equivalent to the managed float category under the existing methodology. De jure arrangement confirmed De facto = De jure Largely market determined De facto soft peg Intervention Floating Free floating Other managed arrangement (residual) Stabilized or crawl-like Yes Yes Yes No No No No Yes