Countries like Malaysia and Thailand that tried to maintain overvalued currencies in the late 1990s inevitably faced increased

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Countries that maintain overvalued currencies are vulnerable to both runs on their currencies and balance of payments deficits. As their currencies become more expensive, foreign investors may start to withdraw their investments, leading to a run on the currency. At the same time, the country's exports become less competitive, leading to a decline in exports and an increase in imports, which can lead to a balance of payments deficit.

Countries Like Malaysia and Thailand That Tried to Maintain Overvalued