What was the name of the 1997–1998 crisis that began with pressure on Thailand’s baht?

The 1997–1998 crisis that began with pressure on Thailand’s baht was the Asian financial crisis.

Thailand abandoned its fixed exchange-rate policy for the baht on July 2, 1997, after sustained speculative pressure depleted foreign-exchange reserves. The currency then fell sharply, and financial stress spread across East and Southeast Asia. Stock markets declined, currencies weakened, and companies with large foreign-currency debts faced severe repayment problems.

Indonesia, South Korea, and other economies were affected, although the scale and timing differed from country to country. Investors reassessed whether exchange rates, banks, and corporations could maintain their debt obligations. International assistance packages, including programs organized with the International Monetary Fund, accompanied financial reforms in several countries.

The crisis was not simply a stock-market event. Currency devaluations, banking failures, property-market declines, and recession were closely connected. The phrase “Asian financial crisis” refers to this wider regional episode, while individual countries experienced their own national market crashes.

The crisis also encouraged many Asian governments to build larger foreign-exchange reserves and reconsider financial regulation.