The 1997 Asian Financial Crisis: Full Timeline

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July 1997: The Thai Baht Falls

Thailand abandoned its currency's peg to the U.S. dollar on July 2, 1997, after unsustainable pressure from speculative attacks and a large current account deficit. The baht devalued sharply, triggering the crisis.

Late 1997: Contagion Spreads

The crisis rapidly spread to other Southeast and East Asian economies with similar vulnerabilities — including Indonesia, South Korea, and Malaysia — as currencies fell and capital fled the region.

1997-1998: IMF Interventions

The International Monetary Fund arranged large bailout packages for several affected countries, including Thailand, Indonesia, and South Korea, generally tied to conditions requiring economic and structural reforms.

Aftermath

The crisis triggered sharp recessions across the region and prompted many affected countries to build much larger foreign currency reserves in subsequent years as a buffer against future currency attacks.