• Thanong
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Thanong
Thanong Khanthong
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Wednesday , July 11 , 2007
Mini series on 1997 crisis (29)
Posted by Thanong , Reader : 635 , 14:03:36  
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The Cat-and-Mouse GameTHAILAND had been maintaining an open foreign exchange system, with a developed spot and forward foreign exchange market. It was easy for the speculators or traders to obtain baht credit from the local banks, which then was used to speculate against the baht.The speculators ambushed the stock market to funnel the baht out of Thailand.In the weeks that followed the mid-May 1997 b....


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Mini series on 1997 crisis (28)
Posted by Thanong , Reader : 527 , 14:00:58  
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A View From the GuruDr Olarn Chaipravat, the president of the Siam Commercial Bank, badly misread the currency battle. He got it wrong all the way.He emerged to declare that the Bank of Thailand won the battle in May 1997. Once Thailand's foremost macroeconomist, Olarn, an MIT graduate and a former Bank of Thailand official, had been expressing his public views against any attempt to devalue the baht....


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Mini series on 1997 crisis (27)
Posted by Thanong , Reader : 609 , 14:00:27  
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The Foreigners Had Perfect ReadingThe Bank of Thailand's currency swap operation was no big secret. When Phaiboon Kittisrikangwal, the chief treasurer of the Bank of Thailand, was busily engaging in his currency swap activity with a foreign bank, the foreign dealer called his friend at the Bangkok Bank. The foreign banker asked whether his Thai friend knew what the Bank of Thailand was up to.The Bang....


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Mini series on 1997 crisis (26)
Posted by Thanong , Reader : 599 , 14:00:04  
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Challenging Them on Their TurfsRERNGCHAI confessed that he was not a foreign exchange expert, and he did not appear to understand the implications of the currency swap. His aides told him that the swap contracts were a necessary tool for managing liquidity.Rerngchai along with his strategists had little understanding of the implications of the foreign exchange swap contracts they accumulated as a smo....


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Mini series on 1997 crisis (25)
Posted by Thanong , Reader : 443 , 13:59:40  
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Waging The Battle In Three FrontsWHY did the Bank of Thailand launch the baht battle in three fronts? In other words, why did it also open the battleground in the forward the market, instead of limiting the battle to the spot market?Even worse, the Bank of Thailand even went out to the offshore markets to defend the baht in the unknown territories. It was worse than Napoleon’s trying to conquer Russi....


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Mini series on 1997 crisis (24)
Posted by Thanong , Reader : 402 , 13:57:56  
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A Confrontation in the Forward MarketTHE battle came to a sudden halt on after the Bank of Thailand played a hardball tactic by splitting the offshore and onshore foreign exchange markets.A tourist exchanges his foreign currency for the baht on July 2, 2007.  The currency speculators could not have imagined that the Bank of Thailand would fight a mad battle, unleashing all of its ammunitions from the....


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