Asian Crisis

The beginning of the Asian financial crisis can be traced back to July 2, 1997. On that day, the Thai government announced the planned Thai Baht float and invited the International Monetary Fund (IMF) to provide 'technical assistance'. The Thai Baht of that day fell about 20% against the US dollar. This triggers the Asian currency crisis. During the week the governments of the Philippines and Malaysia are intervening vigorously to protect their currency. Indonesia intervened and allowed the currency to move within a broad transaction range, but the float was lower than the level of currency authorities that protect currencies from further declines.

1997 - 1998 Asian debt crisis: The Asian financial crisis rapidly accelerated unemployment, poverty, and social turbulence by causing the affected countries to become a severe economic downturn. In spite of the catastrophic impact on these countries, especially Indonesia and Thailand, the debt crisis in Asia brings valuable economic lessons and Asia will become a favorable position within the global crisis in ten years Let's see. Today, many economists believe that the foundation of the Asian economy is better than 1997. In other reforms, the Asian economy set foreign exchange reserves as buffers, most have current account surpluses, and most of them recognize fluctuations in exchange rates.

The Asian financial crisis was a Thai financial crisis in July 1997 and affected currencies, stock markets and other asset prices in several Asian countries. It is also commonly referred to as the Asian currency crisis or IMF crisis. Indonesia, Korea, Thailand are the countries most affected by this crisis. So what is Avon preparing for another currency crisis? Since 1996, senior executives have taken a number of steps to protect themselves from vulnerable currency exchange systems. An important step taken by Avon is not to send monthly remittances, but to send business units in all 10 countries every week. This allows the currency to be converted to dollars more frequently (at the purchase rate) without risk of falling value after several weeks of the original transaction and trading at a much lower price.

After the Asian crisis and its aftermath, the corporate governance system has been reconsidered. "The limits of Asia's corporate governance system are widely seen as a major cause of Asian crisis and its consequences" (Johnson et al., 2000; Dickinson & Mullinex, 2001). As a huge corporate crisis occurred around the world, organizations such as the World Bank have launched a series of programs to promote corporate governance reforms in developing countries and transition economies. Especially after corporate events like Lehman Brothers and Merrill Lynch it is more important to take measures to streamline and protect corporate governance policies.