Which 1997 crisis began when Thailand abandoned its fixed exchange-rate peg to the U.S. dollar?

The 1997 crisis that began when Thailand abandoned its fixed exchange-rate peg to the U.S. dollar was the Asian financial crisis.

On July 2, 1997, Thailand allowed the baht to float after exhausting foreign-exchange reserves while defending its peg. The baht then lost substantial value, and financial pressure spread to other economies in East and Southeast Asia. Indonesia, South Korea, and several neighboring markets experienced currency collapses, falling stock prices, corporate failures, and banking crises.

Many affected economies had accumulated short-term foreign-currency debt while relying on rapid investment and property growth. When confidence reversed, borrowers faced much larger repayment burdens in local-currency terms. International assistance, including programs organized with the International Monetary Fund, helped stabilize several countries.

The crisis is also called the Asian financial crisis or Asian currency crisis. It was not limited to stock exchanges: exchange rates, banks, property markets, and sovereign finances were all involved.