An exchange rate regime has an important impact on macroeconomic policies within
developing countries and therefore essential in macroeconomic policy formation. The main
research question is to determine how the variety of determinants would influence the
exchange rate regime choice for a selection of 19 African developing countries. A distinction
is made between three groups of variables, namely economic fundamentals, economic
stabilisation aspects and currency crises factors, all affecting a country’s exchange regime
choice. The probability of these determinants is then estimated to establish whether the
selected countries would choose a fixed, an intermediate or a flexible exchange regime.