The Thai baht was devalued at the start of the 1997 Asian financial crisis, triggering major regional market turmoil.
Thailand had maintained a relatively fixed exchange rate against the U.S. dollar, while borrowing and property speculation expanded rapidly. As investors questioned whether the peg could be defended, Thailand spent foreign-exchange reserves and eventually allowed the baht to float on July 2, 1997.
The baht's fall intensified pressure on other Asian economies. Indonesia, South Korea, Malaysia, and the Philippines experienced currency weakness, capital flight, falling share prices, and banking stress. The crisis also exposed large foreign-currency debts and weaknesses in financial regulation.
The currency is sometimes confused with the rupiah, ringgit, or won because all were affected by the same regional crisis. The International Monetary Fund later provided assistance to several countries, including Thailand, Indonesia, and South Korea.