In the 1997 Asian financial crisis, Thailand’s baht was forced to float first. Thailand abandoned its fixed exchange-rate system on July 2, 1997, after intense pressure on its foreign-exchange reserves.
The baht’s devaluation triggered wider regional turmoil. Investors withdrew funds from several Asian economies, and currencies including the Indonesian rupiah, Malaysian ringgit, and South Korean won came under severe pressure. Falling exchange rates made dollar-denominated debts much more expensive to repay.
Thailand accepted an International Monetary Fund-led assistance package in August 1997. The crisis affected banks, corporations, property markets, and stock exchanges across East and Southeast Asia. Although often called a stock-market crash, it was also a currency and banking crisis, with exchange-rate collapses amplifying losses in equity markets.