the first stage: on July 2, 1997, Thailand announced that it would abandon the fixed exchange rate system and implement the floating exchange rate system, which triggered a financial storm throughout southeast Asia. On that day, the exchange rate of the Thai baht against the US dollar dropped by 17%, and the foreign exchange and other financial markets were in chaos. Under the influence of the fluctuation of Thai baht, Philippine peso, Indonesian rupiah and Malaysian ringgit have become the targets of international speculators. In August, Malaysia gave up its efforts to defend Ringgit. The Singapore dollar, which has always been strong, has also been hit. Although Indonesia was the latest country to be "infected", it was the most seriously affected. In late October, international speculators moved to Hong Kong, an international financial center, aiming at Hong Kong's linked exchange rate system. The Taiwan Province authorities suddenly abandoned the exchange rate of the new Taiwan dollar and depreciated by 3.46% a day, which increased the pressure on the Hong Kong dollar and the Hong Kong stock market. On October 23rd, the Hang Seng Index in Hong Kong dropped 1,211.47 points. On the 28th, it fell by 1,621.8 points, falling below the 9,-point mark. In the face of fierce attacks from international financial speculators, the Hong Kong SAR Government reiterated that it would not change the current exchange rate system, and the Hang Seng Index rose to 1, points. Then, in mid-November, a financial storm broke out in South Korea in East Asia. On the 17th, the exchange rate of the won against the US dollar fell to a record 1 8∶1. On the 21st, the South Korean government had to seek help from the International Monetary Fund, which temporarily controlled the crisis. However, on December 13th, the exchange rate of Korean won against the US dollar dropped to 1 737.6∶1. The Korean won crisis has also hit the Japanese financial industry, which has invested heavily in South Korea. In the second half of 1997, a series of banks and securities companies in Japan went bankrupt. As a result, the Southeast Asian financial crisis evolved into the Asian financial crisis.

the second stage: in early 1998, Indonesia's financial turmoil resumed, and in the face of the worst economic recession in history, the prescription prescribed by the International Monetary Fund for Indonesia failed to achieve the expected results. On February 11th, the Indonesian government announced that it would implement the linked exchange rate system to maintain a fixed exchange rate between the Indonesian rupiah and the US dollar, so as to stabilize the Indonesian rupiah. This move was unanimously opposed by the International Monetary Fund, the United States and Western Europe. The International Monetary Fund threatened to withdraw its aid to Indonesia. Indonesia is in a political and economic crisis. On February 16th, the exchange rate between the Indonesian rupiah and the US dollar fell below 1,: 1. Affected by this, the southeast Asian currency market has made waves again, and the Singapore dollar, Malaysian dollar, Thai baht and Philippine peso have all fallen. It was not until April 8 that Indonesia and the International Monetary Fund reached an agreement on a new economic reform plan that the Southeast Asian currency market was temporarily calm. The Southeast Asian financial crisis that broke out in 1997 put the Japanese economy, which is closely related to it, in trouble. The exchange rate of Japanese yen dropped from 115 yen to the dollar at the end of June 1997 to 133 yen to the dollar at the beginning of April 1998. In May and June, the exchange rate of the Japanese yen fell all the way, once approaching the mark of 15 yen to 1 dollar. With the sharp depreciation of the yen, the international financial situation is more uncertain and the Asian financial crisis continues to deepen.

the third stage: at the beginning of August 1998, when the American stock market was in turmoil and the exchange rate of the Japanese yen continued to fall, international speculators launched a new round of attacks on Hong Kong. The Hang Seng Index has been dropping to over 6 6 points. The Hong Kong SAR Government responded by using the Exchange Fund to enter the stock and futures markets, absorbing the Hong Kong dollars sold by international speculators, and stabilizing the foreign exchange market at the level of 7.75 Hong Kong dollars to 1 US dollar. After nearly a month of hard struggle, international speculators suffered heavy losses and could not realize their attempt to use Hong Kong as a "super cash machine" again. While international speculators lost in Hong Kong, they suffered a crushing defeat in Russia. On August 17th, the Russian Central Bank announced that it would expand the floating range of the exchange rate of the ruble against the US dollar to 6. ~ 9.5 ∶ 1 during the year, postpone the repayment of foreign debts and suspend the trading of national bonds. On September 2, the ruble depreciated by 7%. This has caused the Russian stock market and foreign exchange market to fall sharply, triggering a financial crisis and even an economic and political crisis. The sudden change of Russian policy has greatly hurt the international speculators who have invested huge amounts of money in Russian stock market, and has led to the comprehensive and violent fluctuations in the foreign exchange market in the stock markets of the United States and Europe. If the Asian financial crisis was still regional before this, then the outbreak of the Russian financial crisis shows that the Asian financial crisis has gone beyond the regional scope and has global significance. By the end of 1998, the Russian economy was still in trouble. In 1999, the financial crisis ended.