Among the macroeconomic variables, our results show that international reserves play important roles in the regime choice. The results using the de facto classifications are very different from those obtained from the de jure specification. Regression results using the LYS classification indicate that developed (open) economies characterized with high credit expansion (international reserves) are more likely to adopt flexible
(fixed) exchange rate arrangements. Turning to regressions from the RR classification, again we do not find regularities in the results. Nevertheless, as in the previous regressions, we find that high international reserves play a major role in determining exchange rate regime choices in the MENA countries. Hence, analysis of the determinants of exchange rate regimes practices brings one clear