Thailand was the first country to devalue its baht during the 1997 Asian financial crisis.
On July 2, 1997, Thailand abandoned its fixed exchange-rate system and allowed the baht to float. The currency had faced intense speculative pressure after years of borrowing, rapid credit growth, property speculation, and weakening export performance.
The baht’s collapse spread through Asia as investors reassessed currencies, banks, and corporations with large foreign-currency debts. Indonesia, South Korea, Malaysia, and other economies experienced severe financial stress, although the timing and policy responses differed from country to country.
The episode is often called a currency or financial crisis rather than only a stock-market crash. Equity markets fell sharply, but exchange-rate collapses, banking problems, and international lending conditions were central to the story.