Which 1997 financial crisis began with the devaluation of Thailand’s baht and triggered Asian stock-market crashes?

The 1997 Asian financial crisis began with Thailand’s baht devaluation and triggered Asian stock-market crashes.

Thailand abandoned the baht’s fixed exchange-rate arrangement on July 2, 1997, after intense pressure on its foreign-exchange reserves. The currency then fell sharply. Investors became concerned about other economies with high foreign-currency debt, weak financial institutions, or fixed exchange rates.

The turmoil spread across East and Southeast Asia, affecting Indonesia, South Korea, Malaysia, and the Philippines. Stock markets fell, currencies depreciated, companies failed, and banking systems came under severe strain. The crisis also damaged economies that had previously been celebrated for rapid growth.

The International Monetary Fund organized assistance programs for several affected countries, including Thailand, Indonesia, and South Korea. Although commonly called the Asian financial crisis, its effects extended beyond Asia, contributing to later pressure in Russia and other emerging markets.