Thailand experienced the 1997 stock-market crash that began the Asian financial crisis.
The crisis became acute after Thailand abandoned the baht’s fixed exchange rate against the U.S. dollar on July 2, 1997. The baht then lost substantial value, exposing companies and banks that had borrowed heavily in foreign currencies. Investor confidence weakened, and Thailand’s stock market and economy came under intense pressure.
Financial stress spread through Southeast and East Asia. Indonesia, South Korea, Malaysia, and other economies experienced currency falls, banking problems, recessions, and sharp market declines. International institutions, including the International Monetary Fund, provided assistance to several affected countries, often alongside difficult economic conditions.
Japan was an important regional economy but was not the country where the crisis began. The crisis also cannot be reduced to a single stock-market event: exchange-rate policies, foreign debt, weak financial supervision, and rapid capital flows all played major roles.