What nickname describes Mexico’s 1994–95 currency and financial crisis?

Mexico’s 1994–95 currency and financial crisis is known as the Tequila Crisis.

The crisis began after Mexico devalued the peso in December 1994. Investors rapidly withdrew capital, and the peso lost much of its value. Mexico had substantial short-term dollar-linked obligations, so the devaluation made repayment more difficult and intensified pressure on banks and companies.

The United States, the International Monetary Fund, and other institutions assembled an emergency support package. The rescue helped Mexico avoid a disorderly default and contributed to a return of investor confidence, although the country experienced a severe recession and rising unemployment.

The nickname is a play on Mexico’s association with tequila and follows the convention of naming financial crises with memorable labels. It is also called the Mexican peso crisis. The event is distinct from the 1997 Asian financial crisis, although both involved sudden capital flight, exchange-rate pressure, and contagion fears.