What Did Soros 's Quantum Fund Do During Asian Financial Crisis

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1. INTRODUCTION: In 1997, Asian countries suffered tremendous loss in Asian Financial Crisis, there were several factors triggered this crisis, such as economic bubbles, and government policies, but one of the most important factors was George Soros’s hedge fund (Quantum Fund) started to “snipe” Asian countries currency and exchange rate. While the crisis that Quantum Fund triggered made the masses have no means to live, some other countries claimed Sorors is a great philanthropist. There are differences between countries and medias and that is because of Soros’s dual personalities. In this essay, we will analyze what did Soros’s Quantum Fund do during 1997 Asian Financial Crisis. 2. SOROS AND QUANTUM FUND: George Soros is an…show more content…
He has wiped out billions of dollars from our economy, and if we 're going to sit by and say nothing in the hope that it will not deter investors, then we 're going to pay a very high price for those investments” told by Malaysian Prime Minister Mahathir Mohamad, who was on vacation during the speculative attack on Southeast Asia 's currencies in mid-July. In January 1997, Quantum Fund started to put their focus on East Asian economy. They figured out Thailand is a country which is enduring the “Dual Crisis Mode”. Thailand’s exportation was suppressed by Chinese economy, and Thai Baht has very strong connection with American dollars which make Thai Baht lack of competitiveness in the international market. Thai government wants to keep the connection of their currency and U.S. dollars and they wish foreign investors can spend more money on their goods than the money they spend on producing them. But once foreign investors stopped investing, Thai must have more exportation than importation. In order to do that, Thai Baht has to devalue a lot in a short time. At the same time, foreign companies are losing interests in investing Thai’s goods since The Bank of Thailand started to lower the interests rate. A Quantum Fund’s economic expert who was working in Hong Kong found out: “Thailand had accepted whatever interest rates proved necessary to maintain the exchange rate within its designated band. But now priori­ties might have to shift. Given the growing troubles at the

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