The most critical decision in the modified de facto classification scheme is thus whether or not the arrangement is floating. The criterion for a float is that the exchange rate is largely market-determined. The observed behavior of the exchange rate, complemented by information on the monetary and foreign exchange policy actions taken by country authorities(notably intervention), allow for a judgment to be made in most cases as to whether the exchange rate is determined primarily by market forces or by official policy actions As noted, once a de facto exchange rate arrangement has been identified as floating, it can be further qualified as free floating if there has been no intervention over the past six months, with the exception of limited intervention to address disorderly market conditions.If IMF staff responsible for the classification do not have sufficient information and data to verify whether this criterion has been met, the arrangement is classified as floating. Data and its availability, rather than subjective judgment, thus play the key role in assigning a country to the free floating category Those de facto arrangements not identified as floating will usually be some type of soft peg As noted previously, a distinction is made in the revised classification system between those pegs that are confirmed de jure arrangements and those for which the de facto and the de jure arrangements differ. The latter are called stabilized arrangements or cranvl-like arrangements, to emphasize that they do not necessarily entail a policy commitment. This terminology is intended to provide a description of the outcome of exchange rate policies looking backward(the exchange rate is not largely market determined and meets certain verifiable statistical criteria), while obviating the need for subjective interpretation of the authorities' policy intentions If the statistical criteria for a soft peg are met, there is a presumption that the arrangement is not floating. Experience has shown that an exchange rate meeting the statistical criteria for a soft peg usually does so as a result of official action, or because the economy has only been subject to small shocks. To make a judgment on the nature of the authorities policy actions, IMF staff may request specific information, including on direct and indirect intervention, foreign exchange market turnover(both spot and derivatives), reserve level and currency composition, interest rates, the foreign exchange activities of public enterprises and sovereign wealth funds, debt composition and debt management policies, macroeconomic data of sufficient reliability, and any other items that may be relevant in a particular instance Consultations with the country authorities have an important role to play. In case of doubt, the statistical classification criteria remain determinative One cannot judge whether an exchange rate is market determined solely by looking at its variability. The definition allows for 3 instances of intervention, each lasting no more than 3 business days. Normally, disorderly market conditions last for only 1 or 2 days8 The most critical decision in the modified de facto classification scheme is thus whether or not the arrangement is floating. The criterion for a float is that the exchange rate is largely market-determined. The observed behavior of the exchange rate, complemented by information on the monetary and foreign exchange policy actions taken by country authorities (notably intervention), allow for a judgment to be made in most cases as to whether the exchange rate is determined primarily by market forces or by official policy actions.4 As noted, once a de facto exchange rate arrangement has been identified as floating, it can be further qualified as free floating if there has been no intervention over the past six months, with the exception of limited intervention to address disorderly market conditions.5 If IMF staff responsible for the classification do not have sufficient information and data to verify whether this criterion has been met, the arrangement is classified as floating. Data and its availability, rather than subjective judgment, thus play the key role in assigning a country to the free floating category. Those de facto arrangements not identified as floating will usually be some type of soft peg. As noted previously, a distinction is made in the revised classification system between those pegs that are confirmed de jure arrangements and those for which the de facto and the de jure arrangements differ. The latter are called stabilized arrangements or crawl-like arrangements, to emphasize that they do not necessarily entail a policy commitment. This terminology is intended to provide a description of the outcome of exchange rate policies looking backward (the exchange rate is not largely market determined and meets certain verifiable statistical criteria), while obviating the need for subjective interpretation of the authorities’ policy intentions. If the statistical criteria for a soft peg are met, there is a presumption that the arrangement is not floating. Experience has shown that an exchange rate meeting the statistical criteria for a soft peg usually does so as a result of official action, or because the economy has only been subject to small shocks. To make a judgment on the nature of the authorities’ policy actions, IMF staff may request specific information, including on direct and indirect intervention, foreign exchange market turnover (both spot and derivatives), reserve level and currency composition, interest rates, the foreign exchange activities of public enterprises and sovereign wealth funds, debt composition and debt management policies, macroeconomic data of sufficient reliability, and any other items that may be relevant in a particular instance. Consultations with the country authorities have an important role to play. In case of doubt, the statistical classification criteria remain determinative. 4 One cannot judge whether an exchange rate is market determined solely by looking at its variability. 5 The definition allows for 3 instances of intervention, each lasting no more than 3 business days. Normally, disorderly market conditions last for only 1 or 2 days