Which financial crisis followed the collapse of Thailand’s baht in 1997 and caused Indonesia’s rupiah to plunge?

The Asian financial crisis followed the collapse of Thailand’s baht in 1997 and caused Indonesia’s rupiah to plunge.

Thailand abandoned its baht peg to the U.S. dollar on July 2, 1997, after sustained pressure on its foreign-exchange reserves. The devaluation triggered investor withdrawals across several Asian economies that had large foreign-currency debts, property bubbles, or fragile banking systems.

Indonesia was especially severely affected. The rupiah lost much of its value, companies struggled to repay dollar-denominated loans, and political and social tensions intensified. South Korea and Thailand also required major international assistance, including programs supported by the International Monetary Fund.

The crisis is sometimes shortened to “the Asian crisis,” although its effects were concentrated in East and Southeast Asia rather than every Asian economy. Hong Kong’s currency peg survived, while Japan faced serious financial weakness but was not the original trigger.