What 1997 currency crisis began when Thailand abandoned its fixed exchange rate for the baht?

The 1997 currency crisis that began when Thailand abandoned its fixed exchange rate for the baht was the Asian financial crisis.

Thailand allowed the baht to float on July 2, 1997, after heavy pressure on its foreign-exchange reserves. The currency had been managed closely against the U.S. dollar, but large external debts, financial-sector weaknesses and speculative attacks made the arrangement increasingly difficult to maintain.

The turmoil spread to Indonesia, South Korea and other economies. Falling currencies increased the local-currency cost of repaying dollar-denominated debts, while banks and companies faced insolvencies and credit shortages.

The International Monetary Fund organized assistance packages for several affected countries. The crisis is sometimes called the Asian financial crisis or Asian currency crisis; both names refer to the same broad episode, which also affected markets beyond East Asia.