This study illustrates a proposal for an exchange rate arrangement which could de link commodity dependent countries from the commodity price cycle and could promote long term development through export diversification. It highlights the trade off of exchange rate intervention in the commodity business cycle and emphasises the complexity of the management under a boom rather than under a burst. In the light of the management of the Zambian copper boom, this paper sets a taxonomy of objectives to be considered in formulating a band for the exchange rate and simulates different scenarios.