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Intermediate exchange rate regimes consist of an array of differing systems allowing a varying degree of flexibility, such as conventional fixed exchange rate pegs, crawling pegs and exchange rate bands (Fischer, 2001, P. 117). In the following such systems are briefly introduced: In a Conventional Fixed Peg arrangement a currency is pegged at a fixed rate to a major currency or a basket of currencies, allowing the exchange rate to fluctuate within a narrow margin of ±1 percent around a formal (or de facto) central rate (IMF AR, 2002, P. 117). The monetary authority intervenes in the market, if the fluctuation is outside these limits. An example of such an arrangement is post-crisis Malaysia, fixing Ringgit against US dollar for a rate of RM 3,8 per $1. A Horizontal Band is somewhat similar to a conventional fixed peg. But it is softer, in that it allows the exchange rate level to fluctuate “within certain margins” of a formal (or de facto) central rate (IMF AR, 2002, P. 117). The central bank commits itself to keep the exchange rate within a specified range (Fischer, 2001, P.5). In a Crawling Peg arrangement the currency is adjusted periodically “in small amounts at a fixed rate or in response to changes in selective quantitative indicators (past inflation differentials vis-à-vis major trading partners…)” (IMF AR, 2002, P.117). Maintaining a credible crawling peg imposes constraints on monetary policy in a similar manner as a fixed peg system. A Crawling Band allows a periodic adjustment of the exchange rate band itself. Bands are “chosen to be symmetric around a crawling central parity or to widen gradually with an asymmetric choice of the crawl of upper and lower bands…” (IMF AR, 2002, P.117). The central bank commits to maintain the exchange rate within