As the country's balance of payments was in tatters in June 1997, the money of Thailand became the object of intense speculation. Amidst the government's efforts, finance minister Dr Amnuay Viravan resigned over policy disagreements and the Thai stock market dropped as investors feared a currency devaluation.
As Thanong, Amnuay's successor, attempted to pick the bits up, he uncovered a dreadful key: Thailand's central bank had almost no liquid foreign exchange reserves left to defend its exchange rate. What action should he take? And, more importantly, what actions could he take?
Thailand An Imbalance of Payments case study solution
PUBLICATION DATE: February 04, 2009 PRODUCT #: HKU804-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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