What was the name of the 1997 crisis that began with Thailand’s currency collapse and spread through East Asian markets?

The 1997 crisis that began with Thailand’s currency collapse and spread through East Asian markets was the Asian financial crisis.

Thailand devalued the baht on July 2, 1997, after authorities struggled to defend its exchange-rate peg. Investors then reassessed currencies, banks, corporations, and stock markets across the region. Pressure spread to Indonesia, South Korea, Malaysia, and other economies.

Many affected economies had experienced rapid growth funded partly by foreign borrowing. Large short-term debts, currency mismatches, property speculation, and weak financial supervision made them vulnerable when capital began leaving.

The crisis was not limited to stock exchanges. It also involved currencies, banking systems, employment, and government finances. The International Monetary Fund arranged major assistance programs, including packages for Thailand, Indonesia, and South Korea.