The Origin Of Asian Crisis Essay Research — страница 2

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package for Thailand including loans totaling $16 billion from the IMF and Asian nation. On August 13, The Indonesian rupiah begins to come under severe pressure. It hits a historic low of 2,682 to the dollar before ending at 2,655. The central bank actively intervenes in its defense. On August 15, Speculators attack Hong Kong dollar; overnight interest rates up 150 basis points from previous day to 8%. Stock market sharply lower. On August 20, IMF approves a $3.9 billion credit for Thailand. The package now totals $16.7 billion. On August 23, Malaysian PM Mahathir Mohamad blames US fianncier George Soros for leading attack on East Asian currencies: “All these countries have spent 40 years trying to build up their economies and a moron like Soros comes along”. In September,

on Sept. 4, Carnage in the Philippine peso continues. It falls to a record low of 32.43 to the dollar before central bank intervention helps it up slightly to end at 32.38. On Sept. 16, Indonesia says it will postpone projects worth 39 trillion rupiah in an attempt to slash the budget shortfall. On Sept. 20, Mahathir tells delegates to the IMF/World Bank annual conference in Hong Kong that currency trading is immoral and should be stopped. In October, on Oct. 1, Mahathir repeats his siren call for tighter regulation, or a total ban, on foreign exchange trading. On Oct. 8, Indonesia says it will ask the IMF for financial assistance. On Oct. 14, the devaluation of the Taiwan dollar begins, which created doubt about Hong Kong changing its long-standing peg to the U.S. dollar. On

Oct. 17, Malaysia presents a belt-tightening budget to try to stop the economy sliding into recession. On Oct. 20-23, the Hong Kong stock market suffers its heaviest drubbing ever, shedding nearly a quarter of its value in four days on fears over interest rates and pressures on the Hong Kong dollar. The fall, more severe than the 1987 crash, forces the Hang Seng index 23.34 percent down to 10,426.30. On Oct.27, stock markets throughout Latin America suffered record losses as Asia’s markets crisis rippled to other vulnerable emerging markets and investors frantically sold their holdings. On Oct. 31, IMP gives Indonesia $23B financial support package. The International Monetary Fund announces a $23 billion multilateral financial package involving the World Bank and Asian

Development Bank to help Indonesia stabilize its financial system. The United States is willing to lend about $3 billion to Indonesia to back up the loan from the International Monetary Fund to help Indonesia stabilize its financial system. In November, on Nov.6, The Bank of Korea once again intervened in an attempt to halt the local currency’s slide versus the dollar. In fact Korea suffered a dramatic loss of competitiveness during the summer months because the large devaluation of its regional trade competitors implied an effective real appreciation of the won and loss of competitive position. On Nov. 8, market prices fell sharply as foreign investors pulled out, fearing South Korea faced an economic crisis on the scale of Southeast Asia’s. And Taiwan’s stock and currency

markets plunged as traders cited fears that a collapse in the won would wipe out Taiwan’s competitiveness against South Korea in key industries such as electronics and refining. A weaker woe would likely force Japan to weaken the yen against the dollar as well, in order to keep its exports competitive in world markets. On Nov 20, dashing any early hope for controlling its financial turmoil, South Korea’s currency fell 10% in trading, a day after the country unveiled an emergency bailout package. Most regional currencies fell sharply following fall in the Korean Woe. South Korea acknowledged that it could not resolve its trouble without outside help, and South Korea begins talks with IMF for tens of billions in emergency aid. On Nov. 25, the yen tumbled to its lowest level

against the dollar in more than five years and Tokyo stocks plunged five percent. Tokyo City Bank, a regional Japanese bank, closed. In December, on Dec. 3, Seoul agrees on 55 billion dollars international bailout package, IMF condition. On Dec. 11, ripples from South Korea’s economic crisis spread throughout Asia as Asian stock markets wilted from the contagion effect. Traders said equity investors throughout the Pacific Rim could not afford to ignore the economic meltdown currently occurring in South Korea. The ravaging of South Korea’s financial markets continued as the tide turned against the country’s effort to regain foreign confidence in its economy. The stock market slumped nearly six percent. On Dec. 17, Japan announces new measures including cut in income tax,