Which 1997 financial crisis began with Thailand abandoning its fixed exchange-rate system?

The 1997 financial crisis that began when Thailand abandoned its fixed exchange-rate system was the Asian financial crisis.

On July 2, 1997, Thailand allowed the baht to float after authorities could no longer defend its exchange-rate regime. The baht then lost substantial value, and pressure spread to currencies, banks, companies, and stock markets across East and Southeast Asia.

Many affected economies had experienced rapid growth financed by foreign borrowing. A significant share of that borrowing was short-term and denominated in foreign currencies, while domestic banks and companies held assets in local currencies. Currency depreciation therefore increased the real burden of debt.

The crisis reached Indonesia, South Korea, Malaysia, and other economies, although its effects differed by country. The International Monetary Fund organized major rescue programs, especially for Thailand, Indonesia, and South Korea. The event is sometimes called the Asian currency crisis, but its consequences extended beyond exchange rates into banking and equity markets.