Asian Economic Crisis in 1997
The Asian Economic Crisis, also called the Asian Contagion, was a sequence of currency devaluations in 1997 and it spread throughout the Asian markets. The first failed currency market was Thailand cause government decided to no longer peg the local currency to the U.S. dollar. The situation affected all over the East Asian markets. As a result, countries faced declined import revenues, and the stock market declined. Affected countries are Thailand, Indonesia, S.Korea, Philippines, Mainland China, Hong Kong, Singapore, Malaysia, Mongolia, United States, and Japan. As a result of the devaluation of Thailand's baht, a large portion of East Asian currencies fell by as much as 38 percent. International stocks also declined as much as 60 percent. The market declines were also felt in the United States, Europe, and Russia as the Asian economies slumped.