Asian financial crisis
The Asian financial crisis is an event in 1997 where most currencies in the eastern region of Asia experienced a major drop in value. The crisis started when Thailand freed its currency from pegging to the U.S dollar so that it will be a floating currency. After the decision, Philippines, Indonesia, Thailand, South Korea, Malaysia, Hong Kong and Laos experienced a heavy drop in the value of their currencies. Although Thailand's currency decision was not clearly the culprit, other economists say that it was merely a capital migration from these affected countries into China which is developing at a very fast pace at the time and a serious of investments were pouring in.