|
|
Post by Fletchsmile on Jan 14, 2016 12:14:59 GMT 7
|
|
AyG
Crazy Mango Extraordinaire
Posts: 5,871 
Likes: 4,555
|
Post by AyG on Jan 14, 2016 13:25:25 GMT 7
The key questions are:
(1) Are the countries able to defend their currencies?
(2) Will they?
The Tom Yang Kung crisis and its aftermath may make them reluctant to try. However, currency reserves are now generally much better than they were back then and the pressure (rising primarily from gradually increasing US interest rates) won't be that intense in my opinion.
However, SE Asia is home to coups, terrorist attacks, natural disasters, and other events of that ilk which can quickly and severely dent confidence in a currency, so there can be little certainty as to how things will play out.
|
|
|
|
Post by Fletchsmile on Jan 14, 2016 21:49:18 GMT 7
In addition to much higher reserves than last time, Thailand has very small USD borrowings compared to its SE Asia peers, unlike say Malaysia. The banking sector is also much better managed and controlled/ regulated than 20 years back too  Plus an understanding that while they can "smooth" and "manage" currency fluctuations, in reality they know the market will prevail |
|
