Which 1997 financial crisis began in Thailand after the baht was allowed to float?

The 1997 financial crisis that began in Thailand after the baht was allowed to float was the Asian financial crisis.

Thailand abandoned its fixed exchange-rate regime on July 2, 1997, after intense pressure on its foreign-exchange reserves. The baht then lost substantial value, exposing businesses and banks that had borrowed in foreign currencies without adequate protection.

Financial stress spread across East and Southeast Asia. Indonesia, South Korea, and Malaysia experienced currency pressure, falling asset prices, banking problems, and deep recessions. International investors withdrew capital, causing major stock-market declines in affected economies.

The International Monetary Fund arranged assistance programs for several countries, including Thailand, Indonesia, and South Korea. The crisis was not simply a stock-market event: exchange-rate regimes, foreign-currency debt, weak financial supervision, and rapid capital outflows all played important roles.