Now they must pay more in baht to service their dollar loans. The Thai central bank had no choice but to sell the greenback at that level. Other central banks helped by buying the baht too. The defenders had some successes, but the Thais eventually concluded the cost was just too much. Manila says it's guilt by association.
Officials there insist the economy is fundamentally strong.
Tell that to the jackals. The baht devaluation also made Thai goods cheaper than similar Philippine products. Add the fact that Manila does not have much in foreign-currency reserves, and you'll understand why the peso was floated on July 11. Jakarta and Kuala Lumpur are more savvy and have bigger guns for the defense of their currencies. Higher consumer prices, for one.