What was the 1997 regional financial crisis called after currency and stock markets across East Asia plunged?

The 1997 regional financial crisis that sent currency and stock markets across East Asia plunging was the Asian financial crisis.

The crisis began in Thailand when authorities abandoned the baht’s fixed exchange-rate system on 2 July 1997. The baht depreciated sharply, and financial pressure spread to Indonesia, South Korea, Malaysia, and other economies. Investors withdrew capital, local currencies weakened, companies struggled with foreign-currency debts, and stock markets fell steeply.

The International Monetary Fund organized major rescue programs, including a large package for South Korea. Governments and companies had accumulated substantial short-term foreign borrowing, while financial supervision and exchange-rate arrangements proved unable to withstand a sudden reversal of capital flows.

The crisis did not affect every Asian economy in the same way. China maintained its renminbi’s value, and Japan faced its own serious financial problems in the same period. The phrase “Asian financial crisis” therefore refers to a broad regional episode, not simply to Thailand’s currency devaluation.