Thailand experienced the 1997 Asian financial crisis's first major currency collapse when its baht was devalued.
On July 2, 1997, Thailand abandoned its defense of the baht's fixed exchange-rate regime and allowed the currency to float. The baht then lost substantial value, exposing weaknesses in Thailand's foreign-currency debt and financial system.
The crisis spread across East and Southeast Asia. Indonesia, South Korea, and Malaysia were among the economies hit by capital flight, currency depreciation, banking stress, and emergency financial measures. International Monetary Fund programs supported several affected countries.
The crisis is sometimes described as a stock-market crash alone, but it was broader than falling share prices. It combined currency, banking, debt, and confidence crises, with consequences for businesses, households, and governments across the region.