Which Thai currency devaluation is widely regarded as the starting point of the 1997 Asian financial crisis?

The Thai baht devaluation is widely regarded as the starting point of the 1997 Asian financial crisis.

Thailand abandoned its fixed exchange-rate policy on July 2, 1997, allowing the baht to float after intense pressure on the currency. The baht then depreciated substantially. Investors and lenders began reassessing the financial stability of other economies that had similar exchange-rate arrangements, high foreign-currency debts, or vulnerable banking systems.

The crisis spread through Southeast and East Asia. Indonesia, South Korea, Malaysia, and the Philippines were among the economies affected, although the timing and severity differed from country to country. Falling currencies made dollar-denominated debts more expensive to repay and contributed to corporate and banking distress.

The episode was not simply a stock-market event: currencies, banks, property markets, and national economies were all involved. The International Monetary Fund provided major assistance packages to several affected countries, including Thailand, Indonesia, and South Korea.