What was the 1997 financial crisis called after Thailand’s currency devaluation spread across East Asia?

The 1997 financial crisis that spread across East Asia after Thailand’s currency devaluation was the Asian financial crisis.

Thailand abandoned its fixed exchange-rate policy for the baht on July 2, 1997, after heavy pressure on its foreign-exchange reserves. The baht then depreciated sharply. Investors reassessed other economies with high foreign-currency borrowing, large current-account deficits, or fragile banking systems.

The turmoil spread to Indonesia, South Korea, Malaysia, and the Philippines, while Hong Kong’s financial markets also came under intense pressure. Falling currencies increased the local-currency burden of dollar-denominated debt, and financial institutions and companies faced severe refinancing problems.

The International Monetary Fund arranged major assistance packages, including programs for Thailand, Indonesia, and South Korea. The crisis did not affect every Asian economy in the same way, and China maintained the renminbi’s exchange rate during the period. The event encouraged later accumulation of foreign-exchange reserves and renewed debate about capital flows and exchange-rate regimes.