What was the common name of the 1994 Mexican financial crisis?

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

The crisis began after Mexico devalued the peso in December 1994. Investors rapidly withdrew capital, the currency lost much of its value, and Mexican banks and companies faced severe pressure because many debts were effectively linked to foreign currency.

The turmoil spread beyond Mexico to other emerging markets, especially in Latin America, and became known as the Tequila Effect. The United States and international institutions assembled a rescue package worth tens of billions of dollars to help Mexico meet its obligations and restore confidence.

The crisis is sometimes confused with the broader Latin American debt crisis of the 1980s. The Tequila Crisis specifically refers to Mexico’s 1994–95 currency and financial emergency, while the Tequila Effect describes its international spillovers.