but this is the thing I really wan to make clear
During this 97-98 financial crisis
is due to foreign currency
whereby a lot of speculator which from foreign country borrow/ speculates money to Malaysia in the overnight market and because too much of them, the overnight rate shoots up from 8%-40%,
This led to rating downgrades and a general sell off on the stock and currency markets.(Wikipedia)
Bases on the theory of economies, if everyone sell of means increase in supply and which also cause the price or the value of the share decrease, and this cause the KLCI drop by 50% around 600, and currency traded at $1=RM4.57
which made a very big impact
and caused Malaysia in their recession period
then our formal Prime Minister set back the currency at RM3.8 to a dollar
to reduce risk of exchange risk
stop foreign market exchange with Malaysia
instead of that MAS can buy back more its own money
and foreign country will buy less or trade less with Malaysia
The Corporate Debt Restructuring Committee dealt with corporate loans. Danaharta discounted and bought bad loans from banks to facilitate orderly asset realization. Danamodalrecapitalized banks.
All information here pick from wikipedia...
just to have better understanding so I write it out
Still got lot of financial crisis that I need to understand...understand the history...
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