When was Tom Yum goong crisis?
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When was Tom Yum goong crisis?
July 2, 1997
On July 2, 1997, the Thai government abruptly announced that it would abandon the baht’s peg to the U.S. dollar and shift to a managed float system. The announcement sent the baht tumbling. Within a short period of time, it cost almost 50 baht to buy a dollar, up from 25 before the announcement.
Why was it called the Tom Yam Kung crisis?
(In Hong Kong, Japan and South Korea, 10,400 people killed themselves as a result of the crisis, according to subsequent research.) In Thailand the financial calamity became known as the tom yum kung crisis, after the local hot-and-sour soup, presumably because it was such a bitter and searing experience.
Why did the Korean won collapse?
The government’s mismanagement of the Won’s exchange rate was a major cause of Korea’s bad loans. When the Won was floated, it caused the Won cost for the repayment of overseas debt to significantly increase.
What is hot money bubble?
Hot money is capital that investors regularly move between economies and financial markets to profit from highest short-term interest rates. Banks bring hot money into an economy by providing short-term certificates of deposit with higher-than-average rates.
What made South Korea Rich?
South Korea relies upon exports to fuel the growth of its economy, with finished products such as electronics, textiles, ships, automobiles, and steel being some of its most important exports.
How did South Korea recover from the Korean War?
Partly, this was because much of the assistance to Korea was relief, including food and building materials for reconstruction, not for longterm development. With such aid, the basic infrastructure was largely rebuilt by the late 1950s, bringing South Korea back up to its prewar level.
Is hot money good?
Hot money flows can be destabilising. A rapid rise in the currency can harm a countries exports because exports become more expensive. Hot money flows can create excess liquidity fuelling a future asset boom and creating more long-term problems.
Why do countries want weak currency?
A weak currency may help a country’s exports gain market share when its goods are less expensive compared to goods priced in stronger currencies. The increase in sales may boost economic growth and jobs while increasing profits for companies conducting business in foreign markets.
