The Asian financial crisis was an avalanche of financial upheaval that spread throughout Asia, which resulted in falling currencies and plunging stock prices. The whole shebang began in July of 1997 when the Thai baht (Thailand’s currency) collapsed after becoming a floating currency.
The cause of the crisis was fueled by a lack of financial balance. Too much money was being borrowed from banks (development was rampant). Further, too much weight was coming from outside investors, due to booming exports. As a result, the value of stocks and housing crashed. The event then created a domino effect that spread to other countries in the region.
The World Bank and International Monetary Fund eventually kicked in financial support to help struggling countries like Thailand get back on their feet.
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Finance: What is a Dual Currency Bond?33 Views
Finance allah shmoop what is a dual currency bond Well
a currency duel would be way cooler to bonds One
dusty road in the wild west a saloon a gal
and a gun plan retired or called are paid whatever
they call bonds when they're dead Anyway a duel currency
bond is a bond where the principal and the interest
payments are made in different currencies like here's a bond
whose principal is paid off in u s dollars But
its interest is paid in euros and yeah whatever currency
being used for interest payments is called the base currency
Well why would you the investor of want one of
these things Well dual currency bonds or subject to exchange
rate risk In other words you're making a gamble not
just on an investment but on which way the exchange
rate will bounce That is if you own something it's
highly exposed two euros while then you're kind of making
a bet that the relative to the dollar the euro
zehr gonna appreciate mohr like the government's printing less of
them You have less inflation whatever because then if that
repayment currency appreciates well boom you're more in the money
Than just the interest you collected And if that currency
doesn't appreciate well there's always bank robbery is a last 00:01:21.189 --> [endTime] resort dual currency dueling currencies No
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