About197 Asian financial crisis

The monetary and financial crisis that swept through East Asian countries from 65438 to 0997 began with the collapse of the Thai baht exchange rate in early July. 1On July 2, 1997, the Central Bank of Thailand announced that it would abandon the fixed exchange rate of 13 against the US dollar, which made the free floating of the Thai baht against the US dollar the direct cause of the financial turmoil.

(1) Starting from Thailand itself, the reasons for the huge current account deficit include the following:

1. The foreign trade deficit has greatly increased, and important pillar industries have suffered heavy losses.

Foreign trade occupies a large proportion in Thailand's economic development, and its economy is largely driven by foreign trade. However, Thailand's export products are seriously short of high-tech export industries with high foreign exchange earning value. The structure of its export trade in Southeast Asian countries is similar to that of the target countries, and most of them are middle and low-grade technical products, thus continuously depressing the prices of the other countries, leading to the decline of Thailand's export competitiveness and the increase of its trade deficit, which is a heavy blow to countries whose economic growth is mainly driven by foreign trade. Since the late 1970s, foreign debts and financial burdens of trade and current account deficits have appeared in Thailand almost every year, which has become an important basis for international financial speculators to attack Thailand.