Key dates in SE Asia financial crisis
Key dates in SE Asia financial crisis
SINGAPORE (Reuter): Indonesia's announcement yesterday that it will seek assistance from the International Monetary Fund was the latest development in Southeast Asia's financial crisis. The following are key dates:
May 14-15: Thailand's baht currency is hit by a massive attack by speculators who decided Thailand's slowing economy and political instability meant it was time to sell. Thailand and Singapore jointly intervene to defend the baht.
The Philippines is affected. The central bank raises the overnight rate 1-3/4 percentage points to 13 percent and dumps dollars.
June 27: The Thai central bank suspends operations of 16 cash-strapped finance companies and orders them to submit merger or consolidation plans.
July 2: The Bank of Thailand announces a managed float of the baht and calls on the International Monetary Fund for "technical assistance".
The announcement effectively devalues the baht by about 15-20 percent. It ends at a record low of 28.80 to the dollar. In Manila, the central bank is forced to intervene heavily to defend the peso.
July 8: Malaysia's central bank Bank Negara has to intervene aggressively to defend the ringgit. The intervention works and the currency hits a high of 2.5100/10 after a low of 2.5240/50.
July 11: The Philippine central bank says in a statement it will allow the peso to move in a wider range against the dollar.
In Indonesia, the rupiah is starting to be affected. In a surprise move, Jakarta widens its rupiah trading band to 12 from eight percent.
July 14: The IMF offers the Philippines almost $1.1 billion in financial support under fast-track regulations drawn up after the 1995 Mexican crisis.
July 24: Currency meltdown.
The ringgit hits 38-month low of 2.6530 to the dollar. Malaysian Prime Minister Mahathir Mohamad launches bitter attack on "rogue speculators".
The Singapore dollar hits 32-month low of 1.4738 to the dollar.
August 5: Thailand unveils austerity plan and complete revamp of finance sector as part of IMF suggested policies for a rescue package. Central bank suspends 48 finance firms.
August 11: The IMF unveils in Tokyo a rescue package for Thailand including loans totalling $16 billion from the IMF and Asian nations.
August 13: The rupiah begins to come under severe pressure. It hits a historic low of 2,682 to the dollar before ending at 2,655. The central bank actively intervenes in its defence.
August 14: Indonesia abolishes its system of managing the exchange rate through the use of a band. The rupiah plunges to 2,755.
August 20: IMF approves a $3.9 billion credit for Thailand. The package now totals $16.7 billion.
August 27: Brunei adds $500 million more to Thailand's bailout package, bringing it to a total of $17.2 billion.
Sept 2: A falling equity market helps push the Philippine peso to a record low of 30.90 to the dollar. In Jakarta, the rupiah ends at 3,045.
Sept 3: Indonesia announces measures to revive investor confidence in the country, including scrapping a 49 percent limit on foreign purchases of shares at initial public offerings and a hike in luxury taxes.
The package has little impact on the rupiah.
Sept 4: Carnage in the Philippine peso continues. It falls to a record low of 32.43 to the dollar before central bank intervention helps it up slightly to end at 32.38.
Ringgit breaks through 3.0000 to the dollar barrier.
Sept 16: Indonesia says it will postpone projects worth Rp 39 trillion in an attempt to slash the budget shortfall.
Oct 6: The rupiah hits a low of 3,845. Dealers are now talking of the possibility of Indonesia having to go to the IMF for help.
Oct 8: Indonesia says it will ask the IMF for financial assistance.
Here is the latest state of play (as of 0720 GMT) of the regional currencies in terms of their fall against the U.S. dollar since July 1.
Percentage closes have been calculated as the local currency's fall against the dollar, not the dollar's rise against the local currency.
July 1 Oct 8 Pct fall
Ringgit 2.524 3.1950 -21.00
Rupiah 2431 3660 -33.58
Peso 26.35 35.53 -25.83
Baht (onshore) 25.88 36.50 -29.10