The substantial movement between soft pegs and floating regimes suggests that floating is not necessarily a durable state, particularly for lower and middle-income countries, whereas there appears to be a greater state of flux between managed floating and pegged arrangements in high-income economies. The frequency with which countries fall back to pegs after a relatively short spell in floating suggests that many countries face institutional and operational constraints to floating. The preference for tighter management seems to have intensified recently as a number of countries have enjoyed strong external demand and capital inflows. Other notable trends included a shift away from currency baskets, with the US dollar remaining the currency of choice for countries with hard pegs as well as soft pegs. One third of the dollar pegs are hard pegs and the remaining are soft pegs. The choice of the US dollar for countries with soft pegs reflects its continued importance as an invoicing currency and a high share of trade with the US or other countries that peg to the US dollar. The euro is the second most important currency and serves as an exchange rate anchor for countries in Europe and the CFA franc zone in Africa.