Which 1997 crisis began when Thailand devalued its currency, triggering turmoil across Asian financial markets?

The crisis that began when Thailand devalued its currency in 1997 was the Asian financial crisis.

Thailand abandoned the baht’s fixed exchange-rate policy on July 2, 1997, after heavy pressure on its foreign-exchange reserves. The baht then lost substantial value, and financial stress spread through economies including Indonesia, South Korea, Malaysia and the Philippines. Stock markets fell sharply as investors reassessed debts, currencies and corporate balance sheets.

The crisis was intensified by large amounts of short-term foreign borrowing, weak financial supervision and exchange-rate arrangements that had encouraged confidence. Currency depreciation made dollar-denominated debts much harder to repay.

The event was not a single stock-market crash confined to one exchange. It was a regional financial crisis involving currencies, banks, property markets and equities. The International Monetary Fund organized major assistance programs, especially for Thailand, Indonesia and South Korea.