Which country was the origin of the 1997 Asian financial crisis?

Thailand was the origin of the 1997 Asian financial crisis.

The crisis began when Thailand abandoned its fixed exchange-rate policy and allowed the baht to float on July 2, 1997. The currency then lost substantial value, exposing weaknesses in Thailand’s banks, corporations, and property market. Investors rapidly reassessed risks across the region.

Before the devaluation, Thailand had attracted large foreign capital inflows and accumulated significant short-term foreign-currency debt. When confidence weakened, capital left quickly. The resulting pressure spread to Indonesia, South Korea, Malaysia, and other economies.

The crisis was not simply a stock-market event: it involved currencies, banks, corporate debt, and national economies. International Monetary Fund rescue programs supported several affected countries, though the required austerity and reforms were controversial. Thailand’s baht decision is widely used as the crisis’s starting point.