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.

Thailand

From 1985 to 1995, Thailand's economy grew at an average of 9%. On 14 May and 15 May 1997, the baht, the local currency, was hit by massive speculative attacks. On 30 June, Prime Minister Chavalit Yongchaiyudh said that he would not devaluate the baht, but Thailand's administration eventually floated the local currency, on 2 July.

Related Topics:
Thailand - 14 May - 15 May - 1997 - Baht - 30 June - Chavalit Yongchaiyudh - Devaluate - 2 July

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

In 1996, an American hedge fund had already sold $400 million of the Thai currency. From 1985 until 2 July 1997, the baht was pegged at 25 to the dollar. The baht dropped very swiftly and lost half of its value. The baht reached its lowest point of 56 to the dollar in January 1998. Thai stock market dropped 75% in 1997. Finance One, the largest Thai finance company collapsed. On 11 August, the IMF unveiled a rescue package for Thailand with more than 16 billion dollars. The IMF approved on 20 August, another bailout package of 3.9 billion dollars.

Related Topics:
Hedge fund - 2 July - 1997 - Finance One - 11 August - IMF - 20 August

~ ~ ~ ~ ~ ~ ~ ~ ~ ~