Which 1997 crisis spread from Thailand after the baht was floated on 2 July?

The 1997 crisis that spread from Thailand after the baht was floated on 2 July was the Asian financial crisis.

Thailand had maintained a currency peg while borrowing heavily in foreign currencies and investing in property and other assets. As confidence weakened, pressure on the baht became difficult to resist. On 2 July 1997, Thailand allowed the currency to float, and it depreciated sharply. Investors then reassessed other economies with similar vulnerabilities.

The turmoil spread through Indonesia, South Korea, Malaysia, and the Philippines, among others. Stock markets fell, currencies lost value, companies struggled with foreign-currency debt, and several governments received International Monetary Fund assistance. Russia later experienced a separate but related period of financial stress in 1998.

The crisis was not simply a stock-market event. Currency mismatches, weak financial supervision, short-term foreign borrowing, and property speculation were central. Calling it only a Thai crash misses its regional scale and its effects on banking and sovereign finances.