The Asian Financial Crisis began in July 1997, primarily affecting several East and Southeast Asian countries. It was triggered by the collapse of the Thai baht after the government was forced to float it due to lack of foreign currency reserves. This event led to a rapid loss of investor confidence, resulting in massive capital flight and currency devaluations across the region. Countries like Indonesia, South Korea, and Thailand faced severe economic downturns, with rising unemployment and bankruptcies. The crisis prompted international organizations, such as the International Monetary Fund (IMF), to intervene with financial assistance and reform programs to stabilize the affected economies.