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Impact of the Asian Financial Crisis on Singapore
1.1 Asian Financial Crisis
Until 1996, many developing countries, especially the Southeast Asian countries were developing their financial markets, which attracted huge inflows of foreign capital. Coupled with weak supervision on continued liberalization of the financial markets, huge current account deficits, and adoption of fixed exchange rate system, these economies were vulnerable to speculative attacks.
The Asian Financial Crisis (AFC) started from Thailand, whereby the property and share market started declining and rumours of banks and finance companies caught in fi…
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