Mexico’s 1994–95 financial crisis and stock-market collapse 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. Mexico faced difficulty refinancing short-term dollar-linked debt, while interest rates and financial stress rose sharply.
The United States, the International Monetary Fund, and other institutions assembled a rescue package worth tens of billions of dollars. The support helped Mexico meet its obligations and restore confidence, although the crisis caused a severe recession and significant hardship.
The nickname is a financial wordplay based on Mexico’s association with tequila, rather than the name of a stock index or a formal government program. It is also distinct from the 1997 Asian crisis, which began with pressure on Thailand’s baht.