Asia crisis in 1997
THE OPPENING:
The Asian financial crisis, began from July 1997 in Thailand,affected financial market,huge currency centers and the price of other assets in some Asian countries including those that were considered as “Asian dragons”.Indonesia,South Korea and Thailand were the most affected by this crisis.Hongkong,Malaysia,Lao,Philipines were also impacted by falling in price suddenly.China,Taiwan,Singapore and Vietnam were not influenced.Japan were not affected much but its economy had to experience some long-run difficulties. Although this crisis was called “East Asian” crisis because it began from East Asia, its effects were worldwide.It even affected some countries such as:Russia,Brasil and America.
1.THAILAND:
From 1985 to 1995,annual economic growth rate is 9 %.From 1991 to 1996,the deficit of Thailand balance trade was 35,26 billion USD.In 1996,Thailand’s current account deficit is 14,7 billion USD.To 1996,foreign loan increases to 89 billion USD.Thailand’s short-run loan in 1995 was 1,18 times as much as nation’s currency saving.From the begin of 1997 to March,1997,Thailand’s citizens and investors withdrawed capital from banks and financial companies.In 3/3/1997,Thailand government had to close stock market within one day,required every finance organizations to raise cash saving and published that 10 finance firms were running abnormally.In 4/3/1997 and 5/3/1997,over 21,4 billion Bath was drawn from banks and finance companies.In 14/5/1997 and 15/5/1997,Baht was hit by massively speculative attacks.In 28/6/1997,58/91 financial companies were closed.Thailand’s foreign currency saving decreased sharply from 38,78 billion USD in 30/6/1997.In 2/7/1997,government was eventually forced to deregulate the Bath.The Bath devalued immediately and lost more than half of it’s value.It reached it’s lowest point of 56 units the US dollar in Jannuary,1998.Thailand’s stockmarket index decreased from 1280 in the end of 1995 to 372 in the end of 1997.Finance
The Asian financial crisis, began from July 1997 in Thailand,affected financial market,huge currency centers and the price of other assets in some Asian countries including those that were considered as “Asian dragons”.Indonesia,South Korea and Thailand were the most affected by this crisis.Hongkong,Malaysia,Lao,Philipines were also impacted by falling in price suddenly.China,Taiwan,Singapore and Vietnam were not influenced.Japan were not affected much but its economy had to experience some long-run difficulties. Although this crisis was called “East Asian” crisis because it began from East Asia, its effects were worldwide.It even affected some countries such as:Russia,Brasil and America.
1.THAILAND:
From 1985 to 1995,annual economic growth rate is 9 %.From 1991 to 1996,the deficit of Thailand balance trade was 35,26 billion USD.In 1996,Thailand’s current account deficit is 14,7 billion USD.To 1996,foreign loan increases to 89 billion USD.Thailand’s short-run loan in 1995 was 1,18 times as much as nation’s currency saving.From the begin of 1997 to March,1997,Thailand’s citizens and investors withdrawed capital from banks and financial companies.In 3/3/1997,Thailand government had to close stock market within one day,required every finance organizations to raise cash saving and published that 10 finance firms were running abnormally.In 4/3/1997 and 5/3/1997,over 21,4 billion Bath was drawn from banks and finance companies.In 14/5/1997 and 15/5/1997,Baht was hit by massively speculative attacks.In 28/6/1997,58/91 financial companies were closed.Thailand’s foreign currency saving decreased sharply from 38,78 billion USD in 30/6/1997.In 2/7/1997,government was eventually forced to deregulate the Bath.The Bath devalued immediately and lost more than half of it’s value.It reached it’s lowest point of 56 units the US dollar in Jannuary,1998.Thailand’s stockmarket index decreased from 1280 in the end of 1995 to 372 in the end of 1997.Finance