Which 1997 crisis began in Thailand and spread through several Asian financial markets?

The 1997 crisis that began in Thailand and spread through several Asian financial markets was the Asian financial crisis.

Thailand abandoned its fixed exchange-rate system on July 2, 1997, allowing the baht to float after heavy pressure on its foreign-exchange reserves. The currency then lost substantial value. Investors reassessed other economies with high foreign-currency debts, property bubbles, weak financial institutions, or similar exchange-rate arrangements.

The turmoil spread to Indonesia, South Korea, Malaysia, and the Philippines, while Hong Kong’s stock and currency markets also came under pressure. Falling currencies made dollar-denominated debts more expensive in local terms, worsening corporate and banking problems. Equity markets dropped as investors withdrew capital.

The crisis was not limited to stock prices: it involved currencies, banks, government finances, and international lending. The International Monetary Fund arranged major assistance programs, especially for Thailand, Indonesia, and South Korea. Russia and Brazil later experienced related global-market stress, but those episodes are generally treated as separate crises.