Which 1997 crisis spread from Southeast Asia after Thailand abandoned its fixed exchange rate?

The 1997 crisis that spread from Southeast Asia after Thailand abandoned its fixed exchange rate was the Asian financial crisis.

Thailand allowed the baht to float on July 2, 1997, after its currency came under intense pressure. The baht then depreciated sharply, and financial stress spread to other economies with substantial foreign-currency borrowing, weak banking systems, or heavy property speculation.

Indonesia and South Korea were among the countries hit particularly hard. Stock markets, currencies, banks, and businesses were affected across the region. The International Monetary Fund arranged major assistance programs, including a large package for South Korea.

The crisis is sometimes called the Asian currency crisis, but “Asian financial crisis” is the broader standard term because the disruption involved banking systems, corporate debt, currencies, and stock markets—not just exchange rates.