New cure for Indonesia? (country may enact a currency board to replace the central bank as a way of coping with its growing economic crisis)(Brief Article)

From: U.S. News & World Report | Date: February 23, 1998| Author: Ahmad, Shaheena | Copyright information

As its worsening economic crisis leads to rioting in the streets, Indonesia is planning to implement a radical remedy that may serve as a model for other troubled Asian nations. It's called a currency board. In Indonesia's case, it will mean tying the country's currency, the rupiah, to the U.S. dollar by setting a fixed exchange rate and holding enough dollars in reserve to back the rupiah 100 percent. The government would then be prepared to replace rupiah with dollars if confidence...

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