The central question to be examined in this paper is what category of exchange rate arrangement would be most appropriate to the period of economic transition. The main objective is to analyse and criticise the exchange rate policy used during the period of the process of economic transition. The study includes chapters on analysing and characterising exchange rate arrangements, deducing from them some macroeconomic aspects and analysing the influence and possibility of using an alternative exchange rate arrangement under the condition of the economic transition aiming at the EU accession. A special regime of the exchange rate policy, based on crawling pegged central parity, is recommended to be used. Finally, an alternative scenario is proposed that could be used during the economic transition in the Czech Republic.