What name is given to the 1994–1995 market crisis caused by Mexico’s peso devaluation?

The 1994–1995 market crisis caused by Mexico’s peso devaluation is called the Tequila Crisis.

Mexico devalued the peso in December 1994 after pressure on its currency reserves and exchange-rate system. Investors rapidly reassessed Mexican assets, and the shock spread to other emerging markets through financial and confidence links.

The crisis produced a sharp fall in Mexican securities and required an international rescue package. The United States arranged a support program involving loans and guarantees, while the International Monetary Fund also participated in assistance.

The nickname is a reference to Mexico rather than a technical description of the market mechanism. The episode is also known as the Mexican peso crisis, a clearer name that avoids confusion with later Asian and Russian financial crises.