Which 1997 crisis began with Thailand’s devaluation of the baht and caused stock-market crashes across Asia?

The Asian financial crisis began with Thailand’s devaluation of the baht in July 1997 and caused stock-market crashes across Asia.

Thailand abandoned the baht’s fixed exchange-rate arrangement on July 2, 1997, after intense pressure on its foreign-exchange reserves. Investors then questioned the currencies and financial systems of other rapidly growing economies, including Indonesia, South Korea, and Malaysia.

The crisis involved more than falling share prices. Companies and banks had accumulated substantial foreign-currency debt, while property markets and credit had expanded quickly. Currency depreciation made dollar-denominated debt far more expensive in local terms, worsening failures and recession.

It is sometimes called the Asian currency crisis, but “Asian financial crisis” is broader because it included banking, corporate, currency, and stock-market turmoil. The International Monetary Fund organized major assistance programs for several affected countries.