neo o
it's coming to me...
- Joined
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- 2004
The asian crisis was caused by speculators withdrawing funds from Thailand because of what they perceived as an unsustainable CAD, which spread like SARS to a number of other Asian economies.hiphophorray123 said:well from what i remember, the asian crisis occured from i think raising (might of been lowering) the national currency's value, then all this shit happened and they had the asian financial crisis
When speculators withdraw money, the value of the currency would naturally depreciate, however the Asian banks maintained a pegged rate, meaning that they maintained currency values by buying or selling their currency. To maintain the value of their currency in the Asian crisis, they needed to buy their currency on world markets with foreign currencies, however it was such a large devaluation that they didn't have the foreign currency reserves to buy up their currencies, and as such had to float.
A floated currency is beneficial, since it reflects both supply and demand for the currency, all developed countries have floated currencies, with a few countries like China maintaining pegged rates to keep their export prices low.
All in all, it was a move they had to make, and a good move anyway.
Please answer my question, are you pro-abortion?there still people....and are you familiar with the universality of human rights...they are shared by everybody, no one has more rights than the other, no one has less rights than the other, no matter what age, race etc as long as they are human..