What event on July 2, 1997, marked the start of the Asian financial crisis?

Thailand devalued the baht on July 2, 1997, marking the start of the Asian financial crisis.

Thailand had maintained a close link between the baht and the U.S. dollar, but pressure from currency speculators and weakening economic conditions made the arrangement difficult to defend. The country abandoned the baht’s fixed exchange-rate system and allowed it to float.

The baht then lost substantial value, and financial stress spread to other economies. Indonesia, South Korea, and several neighboring markets experienced currency falls, stock-market declines, banking problems, and recessions.

The crisis was not simply a stock-market event: foreign-currency debt, weak financial institutions, property bubbles, and rapid capital flows all played roles. International rescue programs, including support coordinated by the IMF, followed.