In July 1997, I became director-general of the Ministry of Finance's International Finance Bureau, and the Asian Financial Crisis began in Thailand. The country's foreign exchange reserves were depleted due to its unsuccessful attempts to sell dollars and buy baht futures to defend the Thai currency. The baht fell sharply, and, unable to maintain its peg to the dollar, moved to a floating exchange rate system.
Thai Finance Minister Thanong Bidaya rushed to Japan to seek support and met with Vice Minister of Finance for International Affairs Eisuke Sakakibara. Sakakibara said that Japan would offer its support once the International Monetary Fund (IMF) program clarified the outlook for Thailand's short-term foreign currency debt and current account balance.
