What was the Mexican stock-market and currency crisis of 1994–1995 commonly called?

The Mexican stock-market and currency crisis of 1994–1995 was commonly called the Tequila Crisis.

The crisis began after Mexico devalued the peso in December 1994, soon after President Ernesto Zedillo took office. Investors lost confidence, capital flowed out, and the peso suffered a sharp collapse. Mexican equities and financial markets were also hit as the currency and debt crisis intensified.

The phrase “Tequila Crisis” was an international nickname for the episode, drawing on tequila as a symbol associated with Mexico. In Mexico, the crisis is also known as the December Mistake, a term referring to the devaluation and the way it was handled.

The United States organized a rescue package involving loan guarantees and other international support. The episode became an important example of how currency pressure, short-term dollar-linked debt, political uncertainty, and investor panic can combine into a broader financial crisis.