What is the Asian financial crisis and what is it?

There were three phases of the outbreak of the Asian financial crisis:

Phase I: Thailand, 2 July 1997.

On July 2, 1997, Thailand announced that it would abandon the fixed exchange rate system and implement a floating exchange rate system, triggering a financial turmoil throughout Southeast Asia. On the same day, the exchange rate of the Thai baht against the US dollar fell by 17%, and foreign exchange and other financial markets were in chaos. Under the influence of the fluctuation of the Thai baht, the Philippine peso, the Indonesian rupiah, and the Malaysian ringgit have become the targets of international speculators.

Phase II: Early 1998, Indonesia.

At the beginning of 1998, Indonesia's financial turmoil resumed, and in the face of the worst economic recession in history, the IMO's prescription for Indonesia failed to achieve the desired effect. On February 11, Indonesia** announced that it would implement a linked exchange rate system with a fixed exchange rate between the rupiah and the US dollar to stabilize the rupiah. This move was unanimously opposed by the International Monetary Organization, the United States, and Western Europe.

The International Monetary Organization has threatened to withdraw aid to Indonesia. Indonesia is in the midst of a major political and economic crisis. [Full Text].

Phase III: Early August 1998, Hong Kong, China.

At the beginning of August 1998, taking advantage of the turmoil in the United States and the continuation of the yen exchange rate, international speculators launched a new round of attacks on Hong Kong. The Hang Seng Index has fallen to more than 6,600 points. The Hong Kong Special Administrative Region (HKSAR**) retaliated by using foreign exchange to enter the **and** markets to absorb the Hong Kong dollars sold by international speculators, stabilizing the foreign exchange market at the level of the Hong Kong dollar to the US dollar.

After nearly a month of hard fighting, international speculators suffered heavy losses and were unable to realize their attempt to use Hong Kong as a "super cash machine" again

If you still want to know a lot, look at it from this **.

The financial turmoil erupted in 1997.

On July 2, 1997, the Asian financial crisis swept through Thailand. Soon, the storm spread to Malaysia, Singapore, Japan, South Korea, China and other places. The currencies of Thailand, Indonesia, South Korea and other countries have depreciated sharply, and at the same time, most of the major Asian countries have been greatly affected, impacting foreign trade enterprises in Asian countries, causing the collapse of many large enterprises in Asia, unemployment of workers, and social and economic depression.

It shattered the scene of rapid economic development in Asia.

The economies of some major Asian economies have begun to slump, and the political situation in some countries has also begun to be chaotic. Thailand, Indonesia and South Korea were among the countries hardest hit by the financial turmoil. Singapore, Malaysia, the Philippines and Hong Kong were also affected, while Chinese mainland and Taiwan were almost unaffected.

World Impact

The impact of the current financial crisis is extremely far-reaching, and it has exposed some deep-seated problems behind the rapid economic development of some Asian countries. In this sense, it is not only a bad thing, but also a good thing, which provides an opportunity for developing countries in Asia to deepen reform, adjust and reorganize the industrial structure, and improve macroeconomic management.

Due to the arduous task of remaking and readjusting, it will take some time for the economies of these countries to fully recover. However, the basic factors for the economic growth of the developing countries in Asia still exist, and there is great hope for the improvement and further development of the economic situation in Asia after overcoming internal and external difficulties.

The Asian financial turmoil is as follows:

Asian financial crisis.

Refers to a worldwide financial turmoil that occurred in 1997. On July 2, 1997, the Asian financial crisis swept through Thailand. Soon, the storm spread to Malaysia.

Singapore, Japan, South Korea, China, etc. The currencies of Thailand, Indonesia, South Korea and other countries have depreciated sharply, while causing a large number of major Asian currencies.

The Asian financial turmoil was caused by the economic situation of Asian countries at that time.

Japan, South Korea, and other countries are export-oriented economic countries, and they are very dependent on the world market, and it is inevitable that the shaking of the Asian economy will affect the whole body.

Background to the financial turmoil:

At that time, Japan, the world's second-largest economy, was affected by the housing crisis and its economy was at a bottom, while other developing countries were at a bottom.

At that time, the dependence on Japan was very high, so the Asian economy was already in a stage of stagflation or even decline. In order to attract foreign capital, some countries have maintained a fixed exchange rate on the one hand and expanded financial liberalization on the other, providing opportunities for international speculators.