Which currency’s devaluation began the 1997 Asian financial crisis?

The devaluation of the Thai baht began the 1997 Asian financial crisis.

Thailand abandoned the baht’s fixed exchange-rate arrangement on July 2, 1997, allowing the currency to float after intense pressure on its foreign-exchange reserves. The baht then lost substantial value, and financial stress spread across several Asian economies.

Investors withdrew capital, currencies weakened, stock markets fell, and companies with large foreign-currency debts faced severe repayment problems. Indonesia, South Korea, and other economies were among those heavily affected, though the effects differed by country.

The crisis was not simply a stock-market crash. It combined exchange-rate pressure, weak banking systems, excessive borrowing, property-market problems, and rapid reversals of international capital. The International Monetary Fund arranged assistance programs for several affected countries, often with economic conditions attached.