Thailand devalued the baht on July 2, 1997, marking the start of the 1997 Asian financial crisis.
Thailand had maintained a long-standing exchange-rate policy that linked the baht closely to the U.S. dollar. Pressure mounted as the country faced large foreign debts, weakening export growth, property-market problems, and speculative attacks. On July 2, authorities abandoned the baht's fixed exchange-rate regime and allowed it to float, leading to a sharp loss in value.
The financial stress spread across the region. Investors reassessed currencies, banks, corporations, and stock markets in countries including Indonesia, Malaysia, South Korea, and the Philippines. International institutions and national governments later arranged major rescue programs, with the International Monetary Fund playing a prominent role.
The date is distinct from the broader crisis period. July 2 identifies Thailand's policy shift; the resulting turmoil continued through 1997 and into 1998, affecting currencies, banks, companies, and equity markets across Asia.