May 28 (Landmarks), July 2, 1997, the Thai baht and adopted a floating exchange rate system, the Asian financial crisis began.


1997, the Thai Ministry of Finance and the National Bank announced that the Thai baht to a floating exchange rate system, to give up the Thai baht and the U.S. dollar-linked exchange rate system implemented over the years.
National Bank statement said Thailand adopted a floating exchange rate system, baht value is determined by the market, in order to reflect the basic situation of the economy, which will benefit the development of the Thai economy as a whole.
Treasury Secretary Nong said, the government adopted a floating exchange rate system after careful consideration, the way out to solve the country's economic problems. He said that a floating exchange rate system short term will give Thai financial markets has brought great impact, but the long-term stability of the Thai baht will.
Prime Minister Chavalit said, Bank Negara announced that the Thai baht to a floating exchange rate system is necessary to adapt to the current economic situation. This is the best way to solve the current economic problems. He said that foreign and domestic investors in the short term will be to restore confidence in the baht.
baht to switch to a floating exchange rate system, the financial markets of Thailand once fell into chaos, the Bangkok foreign exchange market, the dollar exchange baht record the highest ever, $ 1 = 29.45 baht. Stocks bounced up, the share price index rose 40 points, up 528 points from the 1st to 568 points.
According to expert analysis, the stock market rose because foreign capital by the sudden devaluation of the Thai baht, can not be exported, had to put into the stock market speculation, the stock market rose.
1997, the Bank of Thailand announced to abandon the implementation of the 14-year-old U.S. dollar linked exchange rate system, diverted to the free-floating exchange rate regime. Baht the day plunge depreciate 20%, and triggered a sweeping throughout East Asia and Southeast Asia financial turmoil outside mainland China. This is known as "Asia's most serious crisis since the end of the Second World War exposed many new problems caused by the new changes, far beyond the earlier expected to result in the year after, people still not quite unashamedly declared that the crisis has ended.
Throughout this year's financial turmoil, the course can be broadly divided into two phases: the first six months is a crisis of "formation, spread deterioration" period, corresponding to the protagonist of Thailand, China, Taiwan and Hong Kong regions and Korea; six months after "repeated" period of the crisis, the protagonist, Indonesia and Japan. Reference July 1997, the devaluation of the Thai currency, and then spread to the Philippines, Malaysia, Indonesia, and later, even the very good economic situation in Singapore was not spared. August-September, the entire ASEAN region foreign exchange market, the stock market plummeted. October 17, Taiwan's central bank to defend the NT $ 5 billion after the loss, abruptly abandoned the pre resolutely defend Taiwan Dollar exchange rate policy, which will be pushed to the center of the financial storm, the linked exchange rate system under severe attack . 18-28, Hong Kong stocks plunged 30 percent decrease in the market value of $ 151.7 billion, the 28th, the Hang Seng Index was down more than 1,400 points, the highest single-day drop in history, involving Wall Street and European, Latin American city to vote. In November, the eleventh largest economy in the world's financial institutions in Korea problem of success, the series of large enterprise groups in insolvency, the won fell sharply by more than half the country into bankruptcy, forced to the International Monetary Fund (IMF) for help . During some Japanese financial institutions have been closed down. (L $ dj��.c��m)
1998 early rebound in the currency markets of most countries in East Asia and has been stable, began to rebound in the stock market also bottomed. January-February due to the Indonesian political instability and not to cooperate with the IMF, its foreign exchange market again plunged to $ 1.00 by the beginning of 9575 the shield, and fell below 17,000 rupiah per U.S. dollar mark, the regional financial market turmoil. In May, the financial turmoil of the Indonesian political coup, President Suharto was forced to step down in power for 30 years. In early June, Japan finally inevitably become the protagonist of the crisis, the yen against the U.S. dollar fell below the psychological barrier of 140 1, breaking the 146 mark in the 15th Dual City fell again and again, forcing the country's stock and foreign exchange in Asia, including South Korea The share price hit a record low in 11 years, a new round of financial turmoil clouded over. At present, although the strong request of the Asian countries, the United States and the Government of Japan jointly intervene in the market, initially to stop the yen slipped, but countries are still worried about Japan's economic ills remain unresolved, "may be caused in Asia and beyond, new financial turbulence. " some Korean women
yourself temporarily without the dollar convertible into won, [l $ dj��.��r��] to help the government tide over the current financial crisis