Which region’s currency and stock-market crisis began in Thailand in 1997 and spread across East Asia?

The currency and stock-market crisis that began in Thailand in 1997 and spread across East Asia was the Asian financial crisis.

Thailand abandoned its fixed exchange-rate system on 2 July 1997, allowing the baht to float after intense pressure on the currency. The baht then lost substantial value, and financial stress spread to Indonesia, South Korea, Malaysia, and other economies.

Many affected countries had accumulated foreign-currency debt, experienced rapid credit growth, and depended heavily on property and investment booms. Falling currencies made dollar-denominated debts harder to repay, while investors withdrew capital and local stock markets fell.

The International Monetary Fund arranged major assistance programs, including support for Thailand, Indonesia, and South Korea. Hong Kong’s currency peg survived, although its stock market suffered a major decline. The crisis later contributed to stress in Russia and other emerging markets.