On the asset side, three factors may be distinguished, reflecting the non-standard measures. First, the banking system as a whole tended to demand more euro liquidity through refinancing operations with full allotment than actually needed to fulfil reserve requirements and liquidity needs from autonomous factors, and hence deposited the excess amounts back into the deposit facility of the Eurosystem.
Remember the Thai currency crisis was triggered by the perception that the baht had become over-valued because it was tied to a rising US dollar. In short, if capital flows are very large relative to the size of the economies, they are, one way or another, going to cause distortions.