What nickname was given to Mexico's 1994–1995 financial crisis?

Mexico's 1994–1995 financial crisis was nicknamed the Tequila Crisis.

The crisis began after investors lost confidence in Mexico's economic and political stability. The country had issued large amounts of short-term debt linked to the US dollar, while its currency regime limited the government's room to respond to pressure on foreign-exchange reserves.

In December 1994, the Mexican government devalued the peso. The move triggered further capital flight, a sharp currency collapse, rising interest rates, and severe stress for banks and companies with dollar liabilities. Mexican stock prices also fell substantially.

The United States and international institutions arranged financial support, including a US-backed rescue package and assistance from the International Monetary Fund. The nickname is a play on tequila, a drink strongly associated with Mexico; it should not be confused with Brazil's later “Samba effect” terminology.