Which 1997 Asian financial crisis began with the devaluation of the Thai baht?

The 1997 Asian financial crisis began with the devaluation of the Thai baht.

Thailand abandoned its baht peg to the U.S. dollar on July 2, 1997, after heavy pressure on its foreign-exchange reserves. The baht then lost substantial value, and investors reassessed other Asian economies with fixed exchange rates, large foreign debts, or vulnerable banking systems.

The crisis spread to Indonesia, South Korea, Malaysia, and other economies. Stock markets plunged, currencies depreciated, companies struggled to repay dollar-denominated loans, and several countries required international assistance. The International Monetary Fund arranged major support programs, although the conditions attached to them remained controversial.

The baht devaluation was the opening trigger, not the sole explanation for the crisis. Excessive borrowing, weak financial regulation, property speculation, and short-term foreign capital all contributed. The crisis also affected stock exchanges, but it began in currency and credit markets.