The Thai baht was devalued during the financial crisis that began in Thailand in 1997.
Thailand abandoned its fixed exchange-rate system for the baht on July 2, 1997, allowing the currency to float. The baht then lost substantial value, and the crisis spread through economies that had accumulated foreign-currency debt, experienced property booms, or depended heavily on short-term capital inflows.
Indonesia, South Korea, Malaysia, and the Philippines were among the places affected. Stock markets fell, companies struggled to repay dollar-denominated loans, and governments sought international assistance. The International Monetary Fund arranged a major support program for Thailand.
The crisis is often called the Asian financial crisis, but it did not affect every Asian economy in the same way. Japan was already dealing with a prolonged banking and asset-price crisis, while China maintained a stable exchange rate during the episode.