Currency Crashes by Exchange Rate Regime1
|Pegged to a single currency||11||18||9|
|Pegged to a basket of currencies||2||12||11|
A currency crush is defined as a 25 percent or more depreciation in a year with at least a 10 percent increase in the rate of depreciation over the previous year. The exchange regime identified with a country is the arrangement followed the year prior to the crash. The 14 countries constituting the CFA franc zone are treated as one observation. The CFA franc currency “crashed.” in the sense described, in 1981 and 1994. In 1981 it was the result of a change in the French Franc-US- dollar exchange rate while in 1994 the parity with the French franc was devalued.