Which financial crisis included the 1997 collapse of Thailand’s stock market and currency?

The Asian financial crisis included the 1997 collapse of Thailand’s stock market and currency.

The crisis began after Thailand abandoned the baht’s long-standing link to the U.S. dollar on July 2, 1997. The baht then depreciated sharply, revealing problems involving foreign-currency borrowing, property speculation, weak financial institutions, and large short-term debts.

Financial pressure spread across East and Southeast Asia. Indonesia, South Korea, Malaysia, and other economies experienced falling currencies, plunging share prices, recession, and corporate failures. International investors withdrew funds, while governments and the International Monetary Fund arranged rescue programs in several countries.

Although commonly called an Asian financial crisis, the episode was not identical in every country. Japan was already dealing with a separate long-running asset-price collapse, and China maintained its currency’s stability. The crisis also affected Russia and other emerging markets through changing investor confidence and capital flows.