Soros borrowed Thai baht from the American government (this speculation is often carried out by borrowing money), and then sold a lot of Thai baht, so many foreign-funded enterprises in Thailand were affected to sell (Thailand's economy is export-oriented and there are many foreign investors), and more people sold Thai baht. According to the principle of supply and demand, the Thai baht depreciated sharply. Then, Soros took advantage of the devaluation of the Thai baht, bought a lot of Thai baht, and paid back the money of the US government, making a big profit from it. Of course, the United States also made money.

In addition to Soros's personal talent, the connivance of the US government has a lot to do with the financial crisis. At present, the Thai government itself and many foreign-funded enterprises have insufficient foreign exchange reserves.

During the financial crisis, foreign exchange in Asian countries depreciated one after another, which brought great pressure on China's exports. However, if the devaluation of RMB is announced, it will add insult to injury to other Southeast Asian countries that rely on exports to maintain their economic development. In a humanitarian way, the RMB promises not to depreciate. Of course, to some extent, even if the RMB depreciates, we won't get much benefit, so China will do what he wants, so why not?

There is a risk of devaluation of Thai baht, so everyone changes Thai baht into dollars. If you have enough dollars to buy all the Thai baht sold in the market at this time, then the Thai baht will be stable. Therefore, this is the role of foreign exchange reserves (dollars) in resisting exchange rate risks.