Thailand triggered the Asian financial crisis in July 1997 by devaluing the Thai baht.
On July 2, 1997, Thailand abandoned the baht’s fixed exchange-rate arrangement and allowed the currency to float. The decision followed intense speculative pressure and a sharp decline in the country’s foreign-exchange reserves.
The baht’s fall damaged borrowers and companies that had accumulated debts denominated in foreign currencies. Financial stress then spread across East and Southeast Asia, affecting Indonesia, South Korea, Malaysia, the Philippines, and other markets. Stock prices and exchange rates fell sharply in several economies.
The crisis is sometimes called the Asian financial crisis or the Asian currency crisis. The baht was the starting point, but the later damage involved multiple currencies, banks, companies, and governments rather than Thailand alone.