Which regional financial crisis began in Thailand in 1997 and caused stock-market collapses across East Asia?

The regional financial crisis that began in Thailand in 1997 and caused stock-market collapses across East Asia was the Asian financial crisis.

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

Financial stress spread to Indonesia, South Korea, Malaysia, and other economies. Falling currencies increased the local cost of dollar debt, while investors withdrew capital and stock markets plunged.

The International Monetary Fund arranged major assistance programs, including a package for South Korea. The crisis is distinct from the 1998 Russian financial crisis, although Russia's default and ruble devaluation followed during the same period of global instability.