collapse of the Thai Baht
The Collapse of the Thai Baht in 1997 Thailand, during the 1980s and 90s was one of Asia’s most successful economies. ... After Finance One went bankrupt, the attack on the Thai currency, the baht, came in full force. The value of the baht fell dramatically as the economy continued to struggle. In an effort to protect the value of the baht, the Thai government used its foreign exchange reserves. This attempt failed however, and as the baht inevitably declined, bankruptcies were occurring more often and the Thai stock market suffered even worse. ... ) The main factors that led to the collapse of the Thai Baht in 1997 were heavy borrowing from banks, an excess capacity in residential and commercial property, and the major influx of imports versus exports.