In 1997,the Thai government was unable to maintain its exchange rate given the amount of international reserves.

Question

Quizplus · Accepted Answer

This statement is true. The Thai government's fixed exchange rate policy, which pegged the Thai baht to the U.S. dollar, led to a drain on its international reserves as foreign investors sold off Thai assets due to concerns about the country's economic stability. Eventually, the government was unable to maintain the exchange rate and was forced to abandon the fixed exchange rate system. This event is known as the Asian Financial Crisis.

In 1997,the Thai Government Was Unable to Maintain Its Exchange