Which financial crisis began with a stock-market crash in Thailand in July 1997 and spread across East Asia?

The Asian financial crisis began in Thailand in July 1997 and spread across East Asia.

Thailand abandoned its fixed exchange rate for the baht on July 2, 1997, after intense pressure on its foreign-exchange reserves. The baht then depreciated sharply, exposing companies and banks that had borrowed heavily in foreign currencies.

The turmoil spread to Indonesia, South Korea, Malaysia, and other economies. Stock markets fell, currencies weakened, and many businesses faced insolvency. The International Monetary Fund organized major assistance programs, especially for Thailand, Indonesia, and South Korea, tied to financial and economic reforms.

The crisis was not simply a stock-market event. Weak banking supervision, short-term foreign borrowing, property speculation, and rigid exchange-rate arrangements all increased vulnerability. The Russian default and global market turbulence in 1998 were related episodes, but they were not the crisis’s starting point.