Which 1997 financial crisis began after the Thai government abandoned its fixed exchange-rate regime?

The Asian financial crisis began after Thailand abandoned its fixed exchange-rate regime in July 1997.

Thailand had maintained the baht within a managed exchange-rate arrangement, but heavy speculation and declining confidence put intense pressure on its foreign-exchange reserves. On 2 July 1997, the government allowed the baht to float, and the currency depreciated sharply.

The shock spread through financial markets in Southeast and East Asia. Indonesia, South Korea, and other economies faced capital flight, currency collapses, banking failures, or emergency international assistance. Stock markets fell as investors reassessed regional debt and corporate vulnerabilities.

The International Monetary Fund arranged support programs for several affected countries, including Thailand, Indonesia, and South Korea. The crisis was not caused by one identical weakness everywhere; high foreign-currency borrowing, fragile banks, and short-term capital flows made economies especially vulnerable.