Map quiz on Africa in two weeks. C. Consequences for the lower currency 1.
Imports are higher price, so the domestic markets increase in value.
Increase in exports because the goods made in the country are cheaper than the other countries domestic goods. Capital flight is common during these periods of devaluation. It is when investors pull money out of countries causing many companies to go bankrupt. Where the Asian flu started B. Sold currency which lowered the exchange rate C. Currency traders, in New York and London, were at this time betting on the strength of the currency in Thailand. G. China was the only country in the Pacific Rim not to devalue because they knew that if they did the other countries would be forced to devalue again.