The Asian financial crisis began in July 1997, primarily affecting countries like Thailand, Indonesia, and South Korea. It was triggered by the collapse of the Thai baht after the government decided to float its currency, leading to a loss of investor confidence and a rapid withdrawal of foreign capital. This resulted in severe economic downturns, high unemployment, and widespread poverty in the affected nations. In response to the crisis, the International Monetary Fund (IMF) intervened, providing financial assistance and implementing economic reforms. The crisis highlighted vulnerabilities in the region's financial systems and led to significant changes in economic policies, promoting greater transparency and regulation in the financial sector.