The 1997 currency collapse in Thailand that helped start the Asian financial crisis was called the baht crisis.
Thailand abandoned its long-standing exchange-rate support for the baht on 2 July 1997. After the currency was allowed to float, it fell sharply, exposing borrowers and companies that had accumulated substantial foreign-currency debt.
Financial stress spread across East and Southeast Asia. Indonesia, South Korea, and other economies experienced currency declines, banking problems, recession, or emergency international assistance. The International Monetary Fund assembled a major rescue program for Thailand.
The baht crisis is often treated as the opening event of the broader Asian financial crisis, but the regional turmoil had several causes. Rapid credit growth, property speculation, weak financial supervision, and large short-term foreign debts made economies vulnerable to capital flight.