Hot money sells Thai baht in the foreign exchange swap market, and uses forward foreign exchange, futures and currency swaps to offset risks ~ ~ ~ that is, it buys a large number of forward foreign exchange contracts in US dollars and agrees to pay with Thai baht at that time. As a result, the Thai government lost a lot of foreign exchange reserves (US dollars) in the forward market. Later, the Thai baht could not resist and became a floating exchange rate. This leads to an oversupply of Thai baht in the foreign exchange market and a shortage of US dollars, so the oversupply of Thai baht will naturally depreciate ~

The hot money made a profit because they signed a forward contract, that is, they exchanged dollars at the agreed price (the Thai baht was priced, and the Thai baht had not depreciated sharply at that time), so in the end, the hot money was equivalent to changing a bunch of worthless Thai baht into valuable dollars ~ ~ ~

In a word, hot money is the planner of the whole process, and it determines the devaluation of Thai baht when it sells a lot of Thai baht in the forward market ~ ~ ~

In addition, the valuation of Thai baht was already very high at that time, and it is expected to depreciate. . .