Thailand's Currency Crisis: Effects
From Dickinson College Wiki
Effects on Thailand
- For Thai citizens, foreign goods were suddenly more expensive.
- Biggest impacts in the financial sectors (i.e. banks).
- Foreign loans loaned out to Thai citizens aren't paying the interest/face value of the original loan.
- IMF arranged emergency rescue package of $18 billion for Thailand
Effects on Region (SE Asia/Asia)
- Thailand > Indonesia and Korea > Russia > Latin America
- this Asian crisis pushed one-third of the globe into recession during 1998
- total world IMF rescue funds because of this: $184 billion
Effects Beyond Asia
- Any country selling to Thailand pre-crisis now gets severe drop in demand.
