What was the 1994 Mexican financial crisis commonly nicknamed?

The 1994 Mexican financial crisis was commonly nicknamed the Tequila Crisis.

The crisis began after Mexico devalued the peso in December 1994. Investors rapidly withdrew capital, and the currency’s fall created severe pressure on businesses and financial institutions with dollar-denominated obligations. The turmoil spread beyond Mexico, affecting other emerging markets in what became known as the “Tequila Effect.”

The United States and international institutions assembled a support package for Mexico, helping the country meet its obligations and stabilize the peso. The crisis is sometimes confused with the 1997 Asian financial crisis, but the two events occurred in different regions and years. “Tequila Crisis” refers specifically to Mexico’s 1994–1995 financial emergency and its international spillovers.