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Thailand Crisis



Thailand Crisis

The 2 nd July, 1997, is a date that is not included in the history books and in calendars as an event of major importance, yet. The event happened in that day still upsets the world. It is the date when the Thailand crisis started and the stock exchange collapsed. In the same time, the Central Thai Bank liberalises the exchange rate of the national currency, baht, which was strongly wired by the dollar’s exchange rate.

As an immediate reaction, the value of the Thai currency lost 25% in only a day. The Thailand crisis had the effect of a domino and comprised all the states of South-East Asia also called ‘economic tigers’. The collapse of the Asian stock exchanges from 1997, yet, hadn’t happened unexpectedly.


With couple of weeks before the liberalisation of the Bath’s exchange rate, the international speculators assaulted the Asian stock exchanges, attacks which the Central Thai Bank could not control, although it pulverised almost all the national devises reserves- over $38 billion. The following disaster brought a financial crisis that affected not only Thailand but the entire South-East Asia. Strongly affected were Thailand, Indonesia, South Korea, Philippines, the penultimate one having a fast recovery.


Thailand Crisis

The IMF and other international financial organisms had to allocate imposing amounts to blurry the crisis’ extending. South Korea received $58 billion, Thailand $17 billion and Indonesia $50 billion and still it was not enough.


Other Thailand crisis is the political one, the touristic sector losing about 120 billion baht because of the Red Shirts’ anti-governmental manifestations, according to the Thai Federation of the Tourism Industries.


The president of the federation, Kongrish Hiranyakij, said at Bangkok that this political crisis will keep the foreign tourists away, their number coming down with 10%.


All these after the Thai minister of tourism and sports, Chumpol Silapa-archa, said that the number of the foreign tourists came down with 50%, as a result of the warns addressed to the own citizens by the authorities of thousands of countries to avoid the trips to Thailand.


The Thai minister said that the daily number of arrivals on the Suvarhabhumi airport from Bangkok, the most important airport in the country, came down to 20.000 from 30.000 and warned that,


the most important airport in the country, came down to 20.000 from 30.000 and warned that, in this rhythm, the number of the tourists who will visit


Thailand in 2010 will be with one million less than the estimations made at the beginning of the year (about 14 million compared with 15, 5 million as initially estimated).


More, the Kasikorn investigations centre estimated that the actual political crisis could lead to a GDP limited between 0.5% and 2.5 %, in the conditions in which the


Thailand’s economical growth of the last years was of 5%.

Crisis in Thailand

The Bureau for Fiscal Politics estimated also that the rebels will have as effect a deduction between 0.3% and 0.4% of the GDP and calculated that the Thai economy will have a 4.1% growth in 2010 with the condition of not closing the airports and the harbours.



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