What nickname is commonly given to Mexico’s 1994–95 financial crisis?

Mexico’s 1994–95 financial crisis is commonly called the Tequila Crisis.

The crisis began after Mexico devalued the peso in December 1994, soon after the country had experienced large capital inflows and a current-account deficit. Investors rapidly withdrew funds, and the peso lost much of its value. The financial shock spread to other emerging markets, especially in Latin America, creating what became known as the “Tequila Effect.”

The United States and international institutions assembled a rescue package worth tens of billions of dollars to help Mexico meet its obligations and restore confidence. The nickname is a cultural label, not the name of a stock exchange or a formal economic mechanism. The episode is also distinct from the 1982 Mexican debt crisis, which involved a separate sovereign-debt emergency.