east asian crisis IMF warning

The East Asian financial crisis of 1997-1998 was a major financial crisis that affected many countries in East Asia. It began in Thailand, where the Thai baht came under speculative attack in July 1997. This currency crisis caused a chain reaction in the region, with Indonesia, South Korea, and other countries being affected as well. The International Monetary Fund (IMF) issued warnings in the mid-1990s about the vulnerability of East Asian countries to a potential financial crisis due to rapid economic growth and high foreign borrowing in the region. The IMF warned that these countries should take steps to reduce exchange rate volatility, contain economic imbalances, and ensure better supervision of banking and corporate sectors.