oussama94
05-28-2017, 19:46
Leading up to 1997, investors had become increasingly attracted to Asian
investment prospects, focusing on real estate development and domestic
equities. As a result, foreign investment ******* flowed into the region as
economic growth rates climbed on improved production in countries like
Malaysia, the Philippines, Indonesia, and South Korea. Thailand, home of
the baht, experienced a 13 percent growth rate in 1988 (falling to 6.5 percent
in 1996). Additional lending support for a stronger economy came
from the enactment of a fixed currency peg to the more formidable U.S.
dollar. With a fixed valuation to the greenback, countries like Thailand
could ensure financial stability in their own markets and a constant rate
for export trading purposes with the world’s largest economy. Ultimately,
the region’s national currencies appreciated as underlying fundamentals
were justified, and speculative positions in expectation of further climbs in
price mounted.
investment prospects, focusing on real estate development and domestic
equities. As a result, foreign investment ******* flowed into the region as
economic growth rates climbed on improved production in countries like
Malaysia, the Philippines, Indonesia, and South Korea. Thailand, home of
the baht, experienced a 13 percent growth rate in 1988 (falling to 6.5 percent
in 1996). Additional lending support for a stronger economy came
from the enactment of a fixed currency peg to the more formidable U.S.
dollar. With a fixed valuation to the greenback, countries like Thailand
could ensure financial stability in their own markets and a constant rate
for export trading purposes with the world’s largest economy. Ultimately,
the region’s national currencies appreciated as underlying fundamentals
were justified, and speculative positions in expectation of further climbs in
price mounted.