Name: Cabahug, Rizalyn O.

Year/Section: 3rd – 4FM-3

Assignment 6 - Lesson 6: Global Finance & Electronic Banking

w/ International Seminar

The Asian Financial crisis which began in July 1997 wreaked havoc throughout the
currency markets in East Asia.

1. Which of the following currencies had the largest depreciations or devaluations

during the July to November period?

Answer: Thailand

2. Which seemingly survived the first five months of the crisis with the least
impact on their currencies?

Answer: China, because the Chinese government maintained its peg to the US
dollar, the value of the Chinese yuan against the US dollar did not move at all
during the crisis. The Thai baht, on the other hand, has dropped 37.5 percent in
only five months, with the Indonesian rupiah trailing close behind at 33.3
percent.