The 1994 Mexican financial crisis was nicknamed the Tequila Crisis.
The crisis began in late 1994 after Mexico devalued the peso. Investors rapidly withdrew capital, and the peso lost much of its value. The resulting turmoil affected Mexico's financial markets, including its stock market, and created wider concerns about emerging-market debt and currency stability.
The crisis followed a period of substantial foreign investment into Mexico. Political shocks, including the 1994 assassination of presidential candidate Luis Donaldo Colosio, increased uncertainty. Mexico also had large amounts of short-term dollar-linked debt that became more difficult to manage after the devaluation.
The United States and international institutions organized a rescue package worth tens of billions of dollars. The nickname follows a convention in which financial crises are associated with drinks or foods from the affected country. It is therefore sometimes confused with the 1997 Asian financial crisis, which was not called the Tequila Crisis.