Thailand was at the center of the 1997 Asian financial crisis after the baht was devalued.
Thailand abandoned its fixed exchange-rate policy on July 2, 1997, allowing the baht to float after intense pressure on its foreign-exchange reserves. The currency then lost substantial value, and financial stress spread across much of East and Southeast Asia.
Weak banks, high private-sector debt, property speculation, and large foreign-currency liabilities made several economies vulnerable. Indonesia, South Korea, and Malaysia experienced severe market and currency turbulence, although the crisis affected them in different ways.
The International Monetary Fund arranged rescue programs for several countries. The episode was a regional financial crisis involving currencies, banks, companies, and stock markets, not simply a single-day stock-market fall.