In the 1997-98 Asian crisis, Indonesia's rupiah dropped by over 75% before gradually creeping back.
Indonesia's rupiah, which was sliding earlier this year, has bounced back to around its highest since late 2004.
ECONOMIST: The region's currencies stay strong amid the squalls
Indonesia's rupiah was worst hit, as investors sought safety in the American dollar.
When Suharto's currency- board notion was publicized, Indonesia's rupiah was trading at 9, 500 to the dollar, having dropped 80% since last July.
Since a devaluation of Thailand's currency, the baht, in July, undermined confidence in the region as a whole, Indonesia's rupiah has lost a third of its value.
The situation is even worse in Indonesia, where the rupiah has lost more than three-quarters of its value against the dollar over the past six months.
Nike points out that Indonesia's minimum wage has tripled in rupiah terms in the past four years.
Through his children, he was introduced to Steven Hanke, an American economist who believes that the way to restore confidence in Indonesia's economy is through pegging the rupiah to the dollar by means of a currency board, as Hong Kong, Argentina, Bulgaria and others do.
To stop the rupiah's fall, I recommended that Indonesia adopt a currency board like Hong Kong's.
The Indonesian rupiah seems to have come under pressure largely because Indonesia is located near Thailand.
Although officials and some members of his cabinet have said that Indonesia must not get involved in trying to shore up the rupiah, Mr Wahid has said the government should act.
Last summer, when Indonesia's central bank started printing too much money, the rupiah started to slide.
Bank Indonesia is more pragmatic than the Bank of Thailand, widening the rupiah's exchange rate trading band to 8% and ensuring more flexibility in monetary policy.
Despite a new government, a stronger rupiah and falling interest rates, progress has been far too slow in Indonesia.
One has only to look at the stabilisation of the rupiah and the re-entry of foreign and domestic capital investment into Indonesia to get an idea of the revitalisation taking place.
Among the countries hardest hit by the oil crisis is Indonesia, which has seen a 10% fall in the value of its currency, the rupiah, this year because of high oil prices.
Still, Indonesia's second Fund deal signed in January was criticized for largely ignoring the most pressing problems of rupiah free-fall and crushing foreign debt, which by then were dragging down banks and firms.
Bank Indonesia said last week it would boost dollar availability, but investors said they are nervous about trading the rupiah, or Indonesian stocks and bonds, given the difficulty of getting out of the currency.
In return for the Fund's backing, Indonesia would carry out specific reforms of its financial sector, the better to prepare its economy for the rupiah peg and ease the concerns of the IMF and foreign investors.
He is speaking of plots against Indonesia and ordering a military clampdown on unrest, while pinning his economic hopes on a controversial plan to fix the rupiah's exchange rate.
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