Mexico devalued the Mexican peso in December 1994 during the stock-market crash known as the Mexican peso crisis.
On 20 December 1994, Mexico widened the peso’s exchange-rate band and then allowed a sharp devaluation. Investors lost confidence, capital fled, and Mexican stocks and bonds plunged. The episode is also called the Tequila Crisis.
The crisis had international consequences because U.S. banks and investors were exposed to Mexican securities. The United States, International Monetary Fund, and other institutions assembled a rescue package worth tens of billions of dollars. This crisis is distinct from Argentina’s later 2001 debt crisis and Brazil’s 1999 currency devaluation.