MALAYSIA: CAPITAL & CONTROL
DATE TIMELINE OF MALAYSIA'S RESPONSE TO THE 1997 FINANCIAL CRISIS
2nd July 1997 After depleted of assets protecting the Baht. Thailand chooses to float it
10th July Bank Negara Malaysia mediate in the Forex business sector to shield the Ringgit
13th August Mahathir assault rouge examiners and point finger at Soros
27th August Malaysia assign the 100 Index connected counters and banned Short Selling
4th Sept Malaysian Ringgit keep on plunging
20th Sept Mahathir called for coin exchanging shameless and be banned in HK
21st Sept 1997 Soros calling Mahathir 'a menace to his country'
2nd Oct 1997 Meeting in Argentina. Mahathir and Nor Yaakop deciding the Capital Control
5th Dec 1997 Malaysia force extreme business sector measures by Anwar Ibrahim
7th Jan 1998 NEAC was formed
16th Feb 1998 BNM reduce SRR from 13.5% to 10% in banks. Boosting liquidity in banks.
20th May 1998 Asian currencies keep…show more content… To begin with, Malaysia had significant foreign exchange reserves. Surely, before the inconvenience of the controls, the country’s foreign exchange reserves had effectively balanced out. In July 1997 Bank Negara had somewhat more than 70 billion ringgit worth of foreign exchange reserves. Amongst January and August 1998 of foreign exchange reserves varied somewhere around 56 and 59 billion ringgit, the trough coming in February, six months before the capital controls were set up. What's more, the current-account surplus that took after the degrading of the ringgit implied that Bank Negara's stock of reserves was really expanding. There was little pressure on Bank Negara's foreign asset position. There were a lot of dollars to pay for imports, over three months' worth. The Malaysian government plainly perceived that the nation was not going to come up short on