Which 1997 Asian financial-crisis event began when Thailand devalued the baht?

The 1997 Asian financial-crisis event began when Thailand devalued the baht, triggering the Asian financial crisis.

Thailand abandoned its baht’s fixed exchange-rate regime on July 2, 1997, and allowed the currency to float. The baht then lost substantial value, exposing weaknesses in Thailand’s heavily indebted financial and property sectors. Pressure spread rapidly through investor and creditor networks.

The crisis affected Indonesia, South Korea, Malaysia, the Philippines, and other economies. Falling currencies, stock markets, and property prices combined with corporate and bank debt problems. The International Monetary Fund organized assistance programs for several countries, although the conditions attached to those programs remain debated.

The episode is often called the Asian financial crisis or the Asian currency crisis. It was not simply a stock-market crash: exchange-rate collapses, banking stress, foreign-currency debt, and capital outflows were central features. Thailand’s baht decision is the commonly cited starting point, while the crisis’s effects varied considerably from country to country.