Which international financial crisis began in Thailand in 1997 after the baht came under heavy pressure?

The international crisis that began in Thailand in 1997 after pressure on the baht was the Asian financial crisis.

Thailand abandoned its fixed exchange-rate policy on July 2, 1997, allowing the baht to float and sharply depreciate. Investors had become concerned about Thailand’s current-account deficit, extensive foreign-currency borrowing, weak financial institutions, and a property-market downturn.

The turmoil spread rapidly to Indonesia, South Korea, Malaysia, and the Philippines. Falling currencies increased the domestic burden of dollar-denominated debt, while capital flight damaged banks and businesses. Stock markets across the region suffered major declines.

The International Monetary Fund organized assistance programs for several affected economies, including Thailand, Indonesia, and South Korea. Hong Kong’s market also came under intense pressure in 1998, although its currency peg survived. The crisis was therefore regional in origin but global in its financial effects.