The 1994 Mexican financial crisis was commonly called the Tequila Crisis.
The crisis began after Mexico devalued the peso in December 1994, following pressure on its foreign-exchange reserves and concerns about the country’s current-account deficit. The devaluation damaged confidence, pushed up the cost of dollar-denominated debt, and contributed to a severe sell-off in Mexican financial markets.
The crisis spread beyond Mexico as investors reassessed other emerging markets. The United States organized a major international support package, including loan guarantees, to help Mexico meet its obligations and stabilize the peso. Mexico’s economy entered a deep recession, although recovery followed after financial assistance and policy changes.
The name “Tequila Crisis” refers specifically to the Mexican episode, not to the separate Asian financial crisis that began in 1997. It is also called the December Mistake in some historical accounts, reflecting criticism of the timing and handling of the peso devaluation.