Which 1997 financial crisis began in Thailand and spread across East Asian stock and currency markets?

The 1997 financial crisis that began in Thailand and spread across East Asian stock and currency markets was the Asian financial crisis.

Thailand’s government abandoned the baht’s dollar peg on July 2, 1997, after intense pressure on the currency. The baht depreciated rapidly, and investors began reassessing other economies with high foreign-currency debt, fixed exchange rates, and heavily leveraged financial sectors.

The turmoil spread to Indonesia, South Korea, Malaysia, and the Philippines. Stock markets fell, currencies weakened, companies struggled to repay dollar-denominated loans, and several countries required international assistance. The International Monetary Fund organized major support programs, particularly for Thailand, Indonesia, and South Korea.

The crisis is also called the Asian financial crisis or the Asian currency crisis. It was not limited to stock prices: exchange-rate collapses, banking problems, corporate debt, and capital flight were central parts of the event.