What was the name of the currency crisis that triggered Thailand’s 1997 stock-market collapse?

The currency crisis that triggered Thailand’s 1997 stock-market collapse was the Asian financial crisis.

Thailand abandoned the baht’s dollar peg on July 2, 1997, after intense pressure on its foreign-exchange reserves. The baht then depreciated sharply, exposing banks and companies that had borrowed heavily in foreign currencies. Falling asset prices and financial-sector stress spread through several Asian economies.

The crisis affected Indonesia, South Korea, Malaysia, the Philippines, and other markets, although each country had different vulnerabilities. Investors withdrew capital, currencies weakened, and stock indexes plunged. The International Monetary Fund arranged major assistance programs, including a package for Thailand.

The phrase “Asian financial crisis” describes the regional episode, not just Thailand’s exchange-rate decision. The baht devaluation was the spark widely associated with the crisis’s beginning, while corporate debt, weak financial regulation, fixed exchange rates, and rapid capital flows helped amplify the damage.