Asian Crisis

Due to the financial crisis that occurred in Asia in mid 1997, currencies, stock markets and other asset prices of some Asian countries fell sharply. It is difficult to understand the actual impact of these declines on the global market. This decrease is expected to reduce the growth rate of the global economy in 1998 from about 4% of prediction before crisis to about 2% of estimation result. East Asian crisis, the countries listed in "tiger" economy are Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand.

The Asian crisis in 1997-98, which led to the economic downturn in East Asia, is due to excessive expansion and inappropriate regulation. At the heart of the Asian crisis is Thailand's careless macroeconomic management. This is characterized by a fraudulent financial sector. The expansion of the financial crisis in Asia is a result of the emergence of existing global financial integration (and similar export dependence), unfairness of the current account balance and the accompanying exchange rate as well as devastating speculation and pasture spread throughout the region Due to the influence. Structural reform and adjustment of Thai and other Asian countries comes from the International Monetary Fund. The main result is the equilibrium exchange rate system currently widely used in the majority of East Asia.

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.