In Indonesia, on the other hand, corporates borrowed off-shore directly in foreign currency and their such unhedged market exposure (both currency and interest rate), in turn, created credit risk for domestic banks that also extended from Domestic Currency Loans.
If only the above East Asian countries like Indonesia, Malaysia, Thailand and the Philippines had contended with this, they would have preferred the continuous sensitivity of flexible exchange rate regime. After all, the chief merit of flexible exchange rate regime is that it admits of monetary policy autonomy/discretion/independence/ sovereignty and insulates the domestic economy against the shocks of external/foreign disturbances.