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 Asian financial crisis, according to remarks reported by the South China Morning Post. His warning reflects concern that shifting global financial conditions—particularly the direction of U.S. interest rates and the strength of the dollar—could again test the region's resilience.

The 1997 crisis was driven largely by short-term foreign currency borrowing, pegged exchange rates, and rapid capital outflows. Much has changed since: many Asian economies now hold larger foreign exchange reserves, run more flexible currency regimes, and have deeper domestic bond markets. Even so, the governor's caution suggests policymakers are not treating those buffers as permanent.

For markets, the relevance is twofold. First, it signals that regional central banks remain alert to currency volatility and capital flow swings, which can influence rate decisions. Second, it highlights how external conditions—especially U.S. monetary policy—can transmit quickly into Asian asset prices. What to watch: reserve levels, current account balances, and any signs of stress in local currencies or bond markets.