Early second quarter of 1997 saw something that was rather not expected so soon, Asian Financial Crisis. The crisis was so immense that almost every power houses and would-be power houses got under its veil. Such was the intensity that the world could have witnessed a global economic meltdown or in technical terms financial contagion. The Asian Financial Crisis is also commonly as the IMF crisis.

Spectrums of problems were there for the turmoil that rocked and shattered the Asian market, but only few were the power house issues or the problems:

> Foreign exchange shortage that lead the value of equities and currencies of Indonesia, South Korea, Thailand and other countries to plummet dramatically.

> Poorly developed financial system and mechanisms for the allocation of capital into the troubled Asian economy

> The operations, replenishments of funds, and the role of the IMF or the International Monetary Fund

> Effects of crisis on World and The United States both

Actually, the Asian Financial Crisis was triggered by two-rounds of, since summer 1997, currency depreciation. The first round started with a precipitous fall in the value of Malaysian Ringgit, Indonesian Rupiah, Philippine Peso and Thai Bhat. As the value of these currencies were about to touch the stabilization point or you can say were stabilized, the second round of the depreciation started. This second round saw what it didn't expect, Hong Kong dollar, Singapore dollar, Taiwan dollar, Brazilian real, and South Korean Won hit all time lowest.

Moreover, the Asian Financial Crisis was looked by the United States Government with much interest. Strange but true and the reasons that can be sighted are:

> The crisis is resolved by the IMF in co-operation with the Asian Development Bank and the World Bank and promises of standby credit from the United States' Exchange Stabilization Fund.

> The financial markets are more or less interlinked. Happenings in Asian Markets affect United States market as well.

> Currency turmoil affected U.S. exports, import, capital and even the value of U.S. dollar.

> United States was the major investor in the Asian countries, both in terms of financial investment and subsidiaries or franchise of the U.S. companies.

> The crisis caused an economic turmoil that exposed weaknesses of numerous Asian financial institutions, which in turn adversely affecting Japan, United States and the others.

Whatever the situation might have been, the financial institutions and the World Economic powers didn't take lesson from it. After a decade and one year, the world is standing on the same platform. Ironically, things that should have been done in the past, world leaders are pondering on it now. Strange, is it not?

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