The Thai baht devaluation helped begin the Asian financial crisis and the associated 1997 market crash.
On 2 July 1997, Thailand abandoned its fixed exchange-rate system and allowed the baht to float. The currency then lost substantial value. Investors had become concerned about Thailand's foreign-currency debts, property-market weakness, large current-account deficit, and limited foreign-exchange reserves.
Pressure spread rapidly to other economies. Indonesia's rupiah, South Korea's won, and Malaysia's ringgit came under intense selling pressure. Stock markets declined, companies struggled to repay dollar-denominated loans, and several financial institutions failed or required rescue measures. The crisis also affected Hong Kong and contributed to turbulence in global markets.
The event is sometimes called the Asian financial crisis rather than simply a stock-market crash because it involved currencies, banks, corporate debt, and national economies as well as share prices. The International Monetary Fund arranged assistance programs for several affected countries, with Thailand receiving a major rescue package.