Which 1997 crisis began with Thailand devaluing the baht and spread through Asian markets?

The 1997 crisis that began with Thailand’s baht devaluation and spread through Asian markets was the Asian financial crisis.

Thailand abandoned its fixed exchange-rate policy on July 2, 1997, allowing the baht to float after intense pressure on the currency. Investors then reassessed other economies with high foreign-currency borrowing, property speculation, and vulnerable financial systems. Currencies and stock markets in Indonesia, South Korea, Malaysia, and other economies came under heavy pressure.

The International Monetary Fund arranged major assistance programs, including a large package for South Korea. The crisis also affected Russia and contributed to stress in global financial markets, although each country’s circumstances differed.

It is often called the Asian currency crisis, but its effects went beyond exchange rates: banks, companies, property markets, employment, and stock exchanges were all affected.