The Thai baht was devalued in 1997 during the Asian financial crisis, helping trigger regional stock-market crashes.
Thailand abandoned the baht’s fixed exchange-rate system on July 2, 1997, allowing the currency to float. The baht then lost substantial value, exposing weaknesses in Thailand’s heavily indebted financial and property sectors.
The crisis spread through investor withdrawals, currency pressure, corporate debt, and banking problems. Indonesia, South Korea, Malaysia, and other economies were affected, although the causes and severity differed from country to country. Stock markets fell as investors reassessed the region’s growth prospects and financial stability.
The baht’s devaluation was an important starting point, not the only cause of the entire crisis. The International Monetary Fund later organized assistance programs for several affected economies, including Thailand, Indonesia, and South Korea.