Which 1997 crisis spread from Thailand after the baht was allowed to float?

The 1997 crisis that spread from Thailand after the baht was allowed to float 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. The baht depreciated sharply, and financial stress spread to other economies with heavy foreign borrowing, weak banks, and fixed or managed exchange rates.

Indonesia, South Korea, and several Southeast Asian economies were hit particularly hard. Falling currencies made dollar-denominated debts more expensive in local terms, while investors withdrew capital and stock markets plunged. The crisis also exposed weaknesses in corporate governance, banking supervision, and short-term foreign borrowing.

The International Monetary Fund arranged major assistance packages for Thailand, Indonesia, and South Korea. Although the crisis began in Asia, its effects reached global markets, commodity producers, and international financial institutions.