Tag: Asian Financial Crisis

The Asian Financial Crisis of 1997/1998 was a period of economic turmoil that began in Thailand and spread across Asia and beyond. It resulted in a dramatic drop in stock markets, currency devaluations, and bankruptcies, led to a sharp contraction in economic activity, and caused massive job losses. The crisis is largely attributed to the rapid expansion of short-term external debt, excessive foreign exchange exposure, and credit risk caused by overleveraging. The crisis had a severe impact on the Southeast Asian economies, but also affected Russia, Latin America, and Africa. The Asian Financial Crisis was a major cause of the 2008 global financial crisis, and it points to the importance of economic globalization and the need for prudent macroeconomic policies.

Financial

Asian Financial Crisis: Understanding Forex Trading Impact

By Benjamin Gentry
August 13, 2023

5 min read

The Asian Financial Crisis of 1997 was a major financial event that had a major impact on stock market indices, currency exchange rates, and other financial and economic indicators. The root cause of the crisis was the sudden devaluation of the Thai baht, which rippled through the currencies of many other East Asian countries. This led to a number of knock-on effects, particularly in the foreign exchange markets, as investors fled from the affected currencies and the overall risk sentiment deteriorated. The Asian Financial Crisis ultimately led to a global recession, with GDP growth slowing in both developed and developing economies around the world.