Which 1997 financial crisis began after Thailand abandoned its fixed exchange rate for the baht?

The 1997 Asian financial crisis began after Thailand abandoned its fixed exchange rate for the baht.

Thailand had maintained the baht’s value against a basket of currencies, effectively tying it closely to the U.S. dollar. After heavy speculative pressure and falling foreign-exchange reserves, the government allowed the baht to float on July 2, 1997. It soon lost substantial value.

The shock spread across East and Southeast Asia. Investors withdrew funds from countries including Indonesia, South Korea, Malaysia, and the Philippines. Stock markets fell, currencies weakened, companies struggled with foreign-currency debts, and banking systems came under severe pressure. International rescue programs, including assistance from the International Monetary Fund, followed in several countries.

The crisis is sometimes called the Asian currency crisis, but its effects reached stock markets, banks, businesses, and households. It also encouraged governments in the region to build larger foreign-exchange reserves and reconsider financial regulation.