Which 1997 financial crisis began with the devaluation of Thailand’s baht and spread across East Asian markets?

The 1997 financial crisis that began with the devaluation of Thailand’s baht and spread across East Asian markets was the Asian financial crisis.

Thailand abandoned its fixed exchange-rate defense of the baht on July 2, 1997, after exhausting foreign-exchange reserves. The currency fell sharply, and pressure spread to other economies whose currencies, banks, companies, and property markets were vulnerable to high foreign-currency debt and rapid capital outflows.

Indonesia, South Korea, and several other Asian economies experienced severe financial and economic disruption. The International Monetary Fund organized major assistance programs, including a package for South Korea, while governments introduced reforms and austerity measures.

The crisis was not simply a stock-market event: currencies, banks, companies, and real-estate markets were all involved. It is also distinct from Mexico’s 1994–95 peso crisis and Russia’s 1998 default and devaluation.