Posts

Showing posts with the label asian-financial-crisis-2018

HISTORICAL EVENTS IN THE FX MARKET

Image
HISTORICAL EVENTS IN THE FX MARKET ASIAN FINANCIAL CRISIS (1997–1998) _____________________________________________________________ Falling like a set of dominos on July 2, 1997, the relatively nascent Asian  tiger economies created a perfect example in showing the interdependence  of global capital markets and their subsequent effects throughout inter national currency forums. Based on several fundamental breakdowns, the  cause of the contagion stemmed largely from shrouded lending practices,  inflated trade deficits, and immature capital markets. Added together, the  factors contributed to a “perfect storm” that left major regional markets  incapacitated and once-prized currencies devalued to significantly lower  levels. With adverse effects easily seen in the equities markets, currency  market fluctuations were negatively impacted in much the same manner  during this time period. The Bubble Leading up to 1997, investors had become increasingly attracted to Asia