Asia must guard against repeat of 1997 crisis: Philippine central bank chief - South China Morning Post

Philippine central bank governor Eli Remolona has urged Asian economies to guard against a repeat of the 1997 financial crisis, according to the South China Morning Post. His warning reflects a familiar concern: that rapid capital flows, rising debt, and external shocks can expose vulnerabilities in emerging markets, particularly when currencies come under pressure.

The 1997 crisis began with the collapse of the Thai baht and spread across the region, forcing sharp currency depreciations, capital flight, and deep recessions. For today's investors, the comparison matters because Asia's economies are now more integrated into global markets, and shifts in U.S. interest rates or a stronger dollar can still trigger volatility.

What to watch is whether regional central banks maintain adequate reserves, manage foreign-currency exposure, and coordinate policy responses. The remarks are a reminder that crisis prevention is largely about buffers and credibility, not forecasts. For markets, the relevance lies in how such warnings shape risk sentiment toward Asian assets.