Asian financial crisis

The Asian financial crisis was a financial crisis that started in July 1997 in Thailand, and affected currencies, stock markets, and other asset prices of several Asian countries, many part of the East Asian Tigers. It is also commonly referred to as the Asian currency crisis or locally, although inaccurately, as the IMF crisis.

Singapore

The Singaporean economy managed to turn in a relatively healthy performance in comparison to her Asian peers during and as a result of the financial crisis, although its strong linkages and dependency on her regional economies still entailed some negative effects on her economy. However, its overall ability to ride out the crisis was widely noticed, and led to increased study on the Singaporean fiscal policy as possible lessons for her Asian neighbours.

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As an open economy, the Singapore Dollar is open to speculative pressures, as has occurred before in 1985. With the economy so vital to Singapore's standing as an independent nation, the Singapore government manages the exchange rate of her currency to ward off potential speculative attacks. However, the currency, as the strongest in all the ASEAN countries, was also moderately affected with a drop of about 10% against US Dollar during the entire period.

Related Topics:
Singapore Dollar - 1985 - ASEAN

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References

• http://www.iseas.edu.sg/vr82000.pdf