Which currency crisis began in Thailand when the baht was floated on July 2, 1997?

The 1997 Asian financial crisis began in Thailand when the baht was floated on July 2, 1997.

Thailand had maintained a close link between the baht and the U.S. dollar while accumulating substantial foreign-currency debt. After speculative pressure exhausted the country’s ability to defend the exchange rate, the government allowed the baht to float, and it depreciated sharply.

Financial stress spread across East and Southeast Asia, affecting Indonesia, South Korea, Malaysia, and other economies. Stock markets fell, companies struggled with dollar-denominated debt, and international rescue packages became necessary.

The crisis is often called the Asian financial crisis rather than simply a stock-market crash because exchange rates, banks, corporate debt, and sovereign finances were all involved. The International Monetary Fund arranged a major assistance program for Thailand.