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Indonesia was hit hard by the Asian economic crisis. By 8 October 1997, its currency, the rupiah, was down 60 per cent from its pre-floatation value. The rupiah fell to an historic low of 16,500 against the dollar on 23 January 1998. Capital flight accelerated and social unrest was widespread. On 4 February, Professor Steve Hanke proposed to Suharto that a currency board system could stabilise the currency. While Suharto was highly receptive to the idea, the IMF was not. It threatened to withdraw all its support to Indonesia. It was up to Suharto to decide which way to go. This case allows students to explore the general issues surrounding the choice of a fixed or a floating exchange rate arrangement, the potential advantages of each arrangement as well as considering the specific mechanism of a currency board, and to discuss the monetary, economic and political conditions that resulted in the crisis in Indonesia.