On July 2, 1997, Thailand announced the implementation of a floating exchange rate system and abandoned the fixed exchange rate system. This move was like throwing a boulder into water, causing thousands of waves and triggering a financial turmoil that swept Southeast Asia.

On the day that Thailand announced that it would abandon its fixed exchange rate system, the exchange rate between the Thai baht and the US dollar fell sharply, and the financial market was in chaos.

This financial turmoil spread to other Southeast Asian countries that are closely connected to the Thai economy, followed by sharp falls in the Indonesian rupiah, Philippine peso, and Malaysian ringgit.

The crisis quickly spread to other Asian financial markets, creating an Asian financial crisis.

The Asian financial crisis has a complex global economic background.

However, the most direct reason is that international financial speculative institutions are making waves in the Asian financial market, especially the Quantum Foundation of American Jew Soros.

At an international conference on July 28, Malaysian Prime Minister Mahathir Mohamad angrily accused Soros and other international financial speculators of being "foreign beasts deliberately destroying the Malaysian economy."

Soroz became world-famous in 1992. His attack on the pound eventually devalued the pound and hindered the process of European unified currency. However, Soroz gained US$1 billion.

During the financial crisis in various Southeast Asian countries, he took advantage of troubled waters and won another US$2 billion.

In late October, the financial crisis set off a second wave.

International speculators moved to Hong Kong, the international financial center, and pointed their finger at Hong Kong's linked exchange rate system.

On October 17, the Taiwan authorities suddenly abandoned the exchange rate of the New Taiwan dollar, which depreciated by 3.46% in one day. Its stock market also plummeted, putting pressure on the Hong Kong dollar and the Hong Kong stock market. On October 21, Morgan Stanley Bank of the United States transferred the bank's investment in Asia to

2% dropped to 0, immediately setting off a storm that impacted the Hong Kong dollar.

Hong Kong stocks fell sharply, even falling below the 9,000-point mark.

International speculators have made a two-pronged attack on Hong Kong's foreign exchange market and stock market index futures, violently attacking Hong Kong's linked exchange rate system in an attempt to make another huge profit.

In order to curb the crazy speculation of international hot money, the Hong Kong Monetary Authority has taken tit-for-tat measures and decisively adopted temporary emergency measures to give international speculators a head-on blow.

On October 29, the Hong Kong SAR government reiterated that it would not change the current exchange rate system. As a result, market confidence was restored and the Hang Seng Index surged strongly, reaching the 10,000-point mark.

This thrilling conference battle ended with Hong Kong's victory.

Affected by the financial turmoil in Southeast Asia, South Korea's financial situation began to deteriorate seriously in November, forming the third wave of the Asian financial crisis.

On November 17, the government's financial reform law failed to pass the Congress, and financial market turmoil intensified. The exchange rate hit a historical record of 1008:1, and the stock index continued to fall. Since then, people have been selling Korean won frantically and snapping up U.S. dollars.

On the 21st, the South Korean government had to seek help from the International Monetary Fund, and the crisis was temporarily under control.

But by December 13, the Korean won's exchange rate against the U.S. dollar fell further, and the stock index also fell to a record low of 350.68.

The financial crisis had a catastrophic impact on South Korea's economy, and some well-known electronics, automobile, and steel enterprise groups were in trouble.

The deepening of the Korean won crisis has deeply impacted the Japanese economy, which has a large amount of investment in South Korea, and caused a large increase in bad debts and bad debts.

In October, Kyoto Kyoei Bank went bankrupt; in November, financial institutions such as Sanyo Securities Company, Hokkaido Takushoku Bank, and Tokuyo City Bank went bankrupt one after another; on November 24, one of Japan's four major securities companies, Yamaichi Securities Company with a history of 100 years

Declared bankruptcy, becoming the largest bankruptcy case in Japanese history... At this point, the Southeast Asian financial turmoil evolved into the Asian financial crisis.

In 1998, Indonesia's financial crisis re-emerged, and people called it the fourth wave of the Asian financial crisis.

In January 1998, the Indonesian government announced a partial easing of monetary policy in its budget plan to save the Indonesian economy. This move angered the International Monetary Fund (1MF) and the United States.

International speculators took the opportunity to attack Indonesia, causing the Indonesian rupiah to plummet again.

Indonesia has experienced major political, economic and social turmoil, which has even caused the Singapore dollar, Malaysian ringgit, Thai baht, and Philippine peso to plummet.

It was not until Indonesia and the IMF reached an agreement on a revised economic reform plan on April 8 that the Southeast Asian currency market was temporarily calm.

Japan, which has been trapped in bubble economic difficulties for many years, is even worse because of its close relations with Southeast Asia.

The emergence of a large number of new bad debts and bad debts pushed many Japanese banks to the edge of bankruptcy. The yen exchange rate began to decline from the end of June 1997. By mid-June 1998, the yen exchange rate fell sharply again, marking the progression of the Asian financial crisis.

The fifth wave of people.

The international financial situation has subsequently become more uncertain, and the Asian financial crisis continues to deepen.

The sixth wave of the Asian financial crisis began in early August 1998, when international speculators launched a new round of large-scale attacks on Hong Kong.

The Hong Kong government then suddenly took action and struck back.

The Hong Kong Monetary Authority used exchange funds to enter the stock market and futures market, purchase large quantities of blue-chip stocks and futures notes, absorb the huge amounts of Hong Kong dollars sold by international speculators, stabilize the foreign exchange market at the level of HK$7.75 to 1 US dollar, and at the same time increase the overnight bank interest rate to attack international speculators.

After a month of hard work, international speculators suffered heavy losses, shattered their dream of Hong Kong as a "super cash machine", and withdrew from the Hong Kong financial market in disgrace.

By August, Russian financial markets were experiencing volatility, a sign of the Asian financial crisis's impact on the world economy.