Mexico’s 1994–1995 financial crisis and market turmoil is commonly called 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. The resulting turmoil affected Mexican banks, businesses, government finances, and the country’s stock market.
Mexico had accumulated substantial short-term dollar-linked obligations, leaving the economy vulnerable when confidence weakened. The United States and international institutions organized a major rescue package to help Mexico meet its financial commitments.
The crisis also had effects beyond Mexico. Investors became more cautious about other emerging markets, a reaction often called contagion. “Tequila Crisis” is the widely used English nickname; it refers to the Mexican crisis itself, not to a separate commodity-market collapse.