Which 1997 financial crisis spread from Thailand across East and Southeast Asia after currency and market collapses?

The Asian financial crisis spread from Thailand across East and Southeast Asia after currency and market collapses in 1997.

The crisis became acute when Thailand abandoned its fixed exchange rate for the baht on July 2, 1997. The baht depreciated sharply, and investors began questioning the financial strength of other economies that had large foreign-currency debts, weak banking systems, or heavily leveraged companies.

Pressure spread to Indonesia, South Korea, Malaysia, and other markets. Stock prices fell, currencies weakened, businesses failed, and several governments sought international assistance. The International Monetary Fund organized major support programs, especially for Thailand, Indonesia, and South Korea.

The crisis did not affect every Asian economy in the same way, and China avoided a comparable currency devaluation. Its consequences also reached Russia and other emerging markets. The episode showed how quickly capital flows and investor confidence can transmit financial stress between countries.