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Thailand's baht devaluation triggers Asian financial crisis
In July 1997, the Central Bank of Thailand abandoned its fixed exchange rate policy against the US dollar, allowing the baht to float freely. This decision triggered the 'Tom Yum Kung Crisis,' a massive economic collapse that spread across East Asia.
For a decade, nations including Thailand, Malaysia, Indonesia, the Philippines, and South Korea were viewed as 'economic miracles' due to double-digit growth rates. However, this growth was built on a precarious model of cheap foreign debt, current account deficits, and excessive indebtedness. The crisis was exacerbated by a sudden slowdown in exports and increased competition from China.
The resulting domino effect saw the Thai baht plummet from 25 to 40 per dollar. In Indonesia, the collapse of the rupiah led to the downfall of the Suharto regime. The crisis was marked by the failure of 58 financial companies, non-performing loans, and exhausted foreign exchange reserves.
Entities
Central Bank of Thailand · Indonesia · International Monetary Fund · Suharto · Thailand
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] The Central Bank of Thailand abandoned its fixed exchange rate policy against the US dollar in July 1997. www.botosaneanul.ro · www.news20.ro · hotnews.ro
- [● 2 SOURCES] Fifty-eight financial companies faced significant problems during the crisis. www.botosaneanul.ro · hotnews.ro
- [○ 1 SOURCE] The Indonesian rupiah collapsed, leading to the fall of the Suharto regime. www.news20.ro
- [● 2 SOURCES] The Thai baht's value dropped from 25 to 40 per US dollar. www.news20.ro · hotnews.ro