Which 1990s crisis was triggered by Thailand abandoning its fixed exchange rate in July 1997?

The Asian financial crisis was triggered when Thailand abandoned its fixed exchange rate in July 1997.

Thailand had maintained the baht within a narrow range against the U.S. dollar while borrowing heavily, including through short-term foreign-currency loans. As doubts grew about Thailand’s reserves and property market, speculators sold the baht. On July 2, 1997, the government allowed the currency to float, and it depreciated sharply.

Financial pressure spread to Indonesia, South Korea, Malaysia, and other economies. Falling currencies increased the local cost of dollar-denominated debt, while banks and companies faced insolvency, capital flight, and collapsing asset prices. The International Monetary Fund organized major rescue programs, including a package for South Korea.

The crisis is often called the Asian financial crisis rather than simply an Asian stock-market crash because currencies, banks, property markets, and government finances were all involved. Hong Kong’s currency peg survived, although its stock market suffered a severe fall during the wider turmoil.