Which 1997 financial crisis began in Thailand after the baht came under intense speculative pressure?

The 1997 Asian financial crisis began in Thailand after the baht came under intense speculative pressure.

Thailand abandoned its fixed exchange-rate system on July 2, 1997, allowing the baht to float and sharply depreciate. The pressure reflected heavy foreign borrowing, property and stock-market speculation, weak financial institutions, and limited foreign-exchange reserves.

The crisis spread across East and Southeast Asia. Indonesia, South Korea, and Malaysia experienced severe currency, banking, and market stress, while several economies required international assistance. The International Monetary Fund arranged major support programs, especially for Thailand, Indonesia, and South Korea.

Although often called an Asian currency crisis, it was also a banking and corporate-debt crisis. The episode is not the same as the 1998 Russian crisis, though Russia’s later default was partly influenced by the broader global loss of confidence.