Their currencies were floated because they could not resist downward pressure in 1997,2 and they had to give up their fixed rate regimes and move to a float before anyone was prepared for the new system. In these circumstances, floating rate regimes operate very badly and are extremely sensitive to confidence factors.
Great skill is required in finding the right policies and managing the crisis. The countries concerned usually have no experience of it, and therefore often turn to the international community for help. It is an equally large challenge for the international institutions and the spirit of international co-operation.