Which 1990s financial crisis began with Thailand’s decision to let the baht float?

The Asian financial crisis began when Thailand let the baht float on July 2, 1997.

Thailand had maintained a close link between the baht and the U.S. dollar, but pressure from currency speculation and dwindling foreign-exchange reserves made the arrangement difficult to defend. After the baht was allowed to move freely, it lost substantial value and financial stress spread across East and Southeast Asia.

Indonesia, South Korea, Malaysia, and the Philippines were among the countries severely affected. Falling currencies made dollar-denominated debts more expensive, while banks and companies faced defaults and capital flight. The International Monetary Fund organized assistance programs, including a major package for South Korea. The crisis is sometimes confused with the later Russian crisis of 1998, which was partly connected but was a separate event.