10 Bahts (Rama VII) – Thailand

In 1993, Thailand's currency, the baht, was operating under a tightly managed exchange rate regime, pegged to a basket of currencies dominated by the US dollar. This policy, maintained by the Bank of Thailand, was a cornerstone of the country's economic strategy, providing stability for a decade of remarkable export-led growth and attracting substantial foreign investment. The peg was widely credited with fostering a climate of confidence, which fueled a booming economy and made Thailand a celebrated "Asian Tiger."

However, beneath this apparent stability, significant pressures were building. The baht's fixed exchange rate, combined with high domestic interest rates, encouraged massive short-term capital inflows, particularly into the booming property and stock markets. This led to concerns of asset bubbles and inflationary pressures. Furthermore, Thailand's current account deficit was widening alarmingly, as export growth began to slow due to rising competition from China and a strengthening US dollar, to which the baht was effectively tied. This made Thai goods more expensive internationally, eroding the country's competitiveness.

Consequently, 1993 represented a pivotal calm before the storm. While the currency peg remained officially secure and the economy was still growing, astute observers noted the growing imbalances. The Bank of Thailand introduced a limited offshore market, the Bangkok International Banking Facility (BIBF), in an attempt to manage these flows and internationalize the baht. Yet, these measures proved insufficient to address the fundamental misalignment, setting the stage for the speculative attacks that would culminate in the devastating Asian Financial Crisis of 1997, which forced the baht to be floated.