What was the 1997–1998 global market turmoil called after Thailand devalued the baht?

The 1997–1998 global market turmoil that followed Thailand’s baht devaluation was called the Asian financial crisis.

Thailand abandoned the baht’s fixed exchange-rate policy on July 2, 1997, after heavy pressure on its foreign-exchange reserves. The currency then fell sharply, and investors reassessed other Asian economies that had large foreign-currency debts, weak banking systems, or fixed exchange rates.

The crisis spread to Indonesia, South Korea, Malaysia, and the Philippines, while stock markets and currencies suffered major declines. Russia later defaulted on domestic debt in 1998, and Brazil faced renewed pressure, helping turn a regional shock into a broader global financial disturbance.

The International Monetary Fund provided large assistance packages to several affected countries. The crisis also encouraged many Asian governments to build larger foreign-exchange reserves and strengthen financial regulation.