Which 1997 crisis began with Thailand's decision to let the baht float against the US dollar?

The Asian financial crisis began with Thailand's decision to let the baht float against the US dollar.

Thailand abandoned its fixed exchange-rate policy on July 2, 1997, after intense pressure on its foreign-exchange reserves. The baht then lost value, making dollar-denominated debts more expensive for Thai companies and financial institutions. Investor confidence weakened across the region.

The turmoil spread to Indonesia, South Korea, Malaysia, and other Asian economies. Stock markets fell, currencies depreciated, companies failed, and several governments sought international assistance. The International Monetary Fund supported programs for countries including Thailand, Indonesia, and South Korea.

The crisis was not simply a stock-market event. High private-sector borrowing, weak financial supervision, property bubbles, and large foreign-currency debts all increased vulnerability. Thailand's currency decision was the immediate starting point, while the wider causes were structural.