20 years ago Thailand triggered the Asian financial crisis by delinking the baht from the US dollar. The asset-liability mismatch was at the root of the 1997 crisis,” Sanjay Guglani, chief investment officer of Silverdale Funds, said in a phone interview. To be sure, Asian economies and the markets are much more resilient today. The Asian crisis underscored the vulnerability of regional economies to hot money outflows and the importance of adequate foreign exchange reserves, which they squandered on an unsustainable defence of their currencies. Since the financial crisis on 1997, Indian equity markets have posted the second highest annualized returns after Indonesia.

Source: Mint July 04, 2017 05:26 UTC