Currency Crisis in Southeast Asia

This paper is an examination of the Southeast Asia currency crisis in general and its relationship to, and possible impact on, the field of international banking (The BCCI affair..., 1992, Online; Haq, 1998). One of the primary topics to be discussed is the fact that as a business and practice, an international bank has the primary goal of measuring an economy's performance and the stability of its currency so that investors can identify investment opportunities and thereby make value-added business decisions (Tamburini, 1997, 32).

Another topic addressed in this paper will be to explain and examine the reasons for the fluctuations in currency values, most of which are caused by a phenomenon caused by the currency exchange rate. Simply defined, this means the value comparison of one currency in relation to other currencies of the world. For example, if $1 is converted into 125 Japanese yen, then the exchange rate is 125 Yen/dollar. This figure is shown in financial tables in newspapers usually as YD/125:1 (McClintock, 1996, 15).

When the dollar buys more yen, it is said to be worth more and its value is said to "appreciate" while the Yen is said to "depreciate." Other ways this has been expressed in news stories is "the dollar is worth more," "the Yen is worth less," and so on. When the dollar "appreciates" against the Yen, say to 135:1, then that also means that $1 buys more Japanese goods than it would if the r

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had to be merged with the Catholic bank, Banca Cattolica del Veneto and be renamed Banca Ambroveneto before it could regain stability (Tully, 1987. 28). For blatant fraud and mismanagement, as well as illegal conversion of funds, the BCCI scandal of 1991 is unequaled. In a report entitled "The BCCI Affair" it is described as "an elaborate corporate spider web with BCCI's founder, Agha Hassan Abedi and his assistant, Swatch Naqvi, in the middle -- was an essential component of its spectacular growth, and a guarantee of its eventual collapse" (BCCI Affair..., 1992, 1). A similar report on the failed Bank of Barings by the Bank of England suggests that that bank institution failed because of "unauthorized and concealed trading activities of the bank" and a "serious failure of controls and management confusion within Barings" (Extract from..., 1998, 1). In effect, all of these bank failures can be attributed to currency trading practices and poor management. Banking in the Asian Currency Crisis To gauge the health of banking systems, analysts look at several factors, including the level of non-performing loans (loans on which borrowers have ceased making payments), loan loss reserves (money set aside to cover losses as a perce
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Some common words found in the essay are:
Tax Exposure, Gibson Satsuki, YD/1251 McClintock, Forward FX, National Bank, Online Haq, East Asia's, Summary Country, Economic Issues, Below Table, mcclintock 1996, bank failures, currency crisis, exchange rates, international banks, exchange rate, bcci affair, national bank,  , asian currency crisis, haq 1998, gibson satsuki 1995, branegan gibson satsuki, ball branegan gibson, bcci affair 1992,
Approximate Word count = 2172
Approximate Pages = 9 (250 words per page)

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