Which 1997 crisis began in Thailand after the baht was forced to float and spread across Asian financial markets?

The 1997 crisis that began in Thailand after the baht was forced to float and spread across Asian financial markets was the Asian financial crisis.

Thailand abandoned its fixed exchange-rate system on 2 July 1997 after intense pressure on the baht. The currency depreciated sharply, and investors reassessed the debts and banking systems of other rapidly growing Asian economies.

Contagion reached Indonesia, South Korea, Malaysia, and the Philippines, while stock markets and currencies suffered major declines. Many companies and banks had borrowed heavily in foreign currencies, making repayment far more difficult after local currencies weakened.

The International Monetary Fund organized rescue programs for several affected countries, with Indonesia and South Korea receiving especially large assistance packages. Hong Kong’s currency peg survived, although its stock market endured severe volatility. The crisis is distinct from the 1998 Russian financial crisis, which followed later.