(1) The impact of hot money in the international financial market. About $7 trillion of international capital flows around the world. Once international speculators find out which country or region is profitable, they will immediately attack the currency of that country or region through speculation to make huge profits in the short term.

(2) Some Asian countries have improper foreign exchange policies. In order to attract foreign investment, they maintain a fixed exchange rate on the one hand and expand financial liberalization on the other, which provides opportunities for international speculators. For example, Thailand deregulated the capital market at 1992 before the financial system was straightened out, which made the short-term capital flow unimpeded and provided conditions for foreign speculators to speculate on the Thai baht.

(3) In order to maintain a fixed exchange rate system, these countries have used foreign exchange reserves for a long time to make up for their deficits, resulting in an increase in foreign debt. (4) The foreign debt structure of these countries is unreasonable. In the case of more short-term and medium-term debts, once the outflow of foreign capital exceeds the inflow of foreign capital, and the domestic foreign exchange reserves are insufficient to make up for it, the devaluation of the country's currency is inevitable.

Internal basic factors include:

(1) Overdraft economy is growing rapidly, and non-performing assets are expanding. Maintaining a high economic growth rate is the common aspiration of developing countries. When the conditions for rapid growth become insufficient, in order to maintain the speed, these countries turn to foreign debt to maintain economic growth. However, due to the poor economic development, by the mid-1990s, some Asian countries were unable to repay their debts. In southeast Asian countries, the bubble blown by real estate only brought bad debts and bad debts of bank loans; As for South Korea, because it is too easy for large enterprises to obtain funds from banks, once the business conditions of enterprises are not good, the non-performing assets will expand immediately. The existence of a large number of non-performing assets in turn affects the confidence of investors.

(2) The market system is immature. First, the government excessively interferes with the allocation of resources, especially the loan investment and projects in the financial system; The other is that the financial system, especially the supervision system, is not perfect.

(3) The defect of "export substitution" mode. The "export substitution" model is an important reason for the economic success of many Asian countries. However, this model also has three shortcomings: first, when the economy develops to a certain stage, the production cost will increase and the export will be restrained, resulting in the imbalance of international payments in these countries; Second, when this export-oriented strategy becomes the development strategy of many countries, it will form mutual extrusion; Third, the gradual progress of products is a necessary condition for continuing to implement export substitution, and it is impossible to maintain competitiveness simply by relying on the cheap advantages of resources. These countries in Asia have not solved the above problems after achieving rapid growth.

World economic factors mainly include:

(1) The negative impact of economic globalization. Economic globalization makes the economic ties of countries around the world closer and closer, but its negative effects can not be ignored, such as the intensification of interest conflicts between nation-States, the enhancement of capital mobility, and the difficulty in preventing crises.

(2) Unreasonable international division of labor, trade and monetary system are unfavorable to third world countries. In the field of production, high-tech products and high-tech itself are still produced in developed countries, and the technical content of products is gradually declining to underdeveloped countries. Least developed countries can only do assembly work and produce primary products. In the field of exchange, developed countries can buy primary products at low prices and monopolize high prices to promote their own products. In the field of international finance and currency, the whole global financial system and system is also beneficial to financial powers.