Indonesia hit by the Asian economic crisis. By October 8, 1997, its currency, the rupiah, down 60% from its pre-placement value. Rupee fell to a record low 16,500 against the dollar by 23 January 1998. Capital flight accelerated and social unrest was widespread. February 4, Professor Steve Hanke proposed by President Suharto that a currency board would stabilize the currency. While Suharto was very receptive to the idea, the IMF was not. He threatened to withdraw its support to Indonesia. It was up to Suharto to decide which way to go. "Hide
by Michael Enright, Betsy Massar, Andrew Lee, James Newton Source: University of Hong Kong, 25 pages. Publication Date: June 22, 2000. Prod. #: HKU093-PDF-ENG
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