Mexico’s 1994–1995 financial crisis was called the Tequila Crisis.
The crisis began after Mexico devalued the peso in December 1994. Investors rapidly withdrew capital, fearing further currency losses and questioning the country’s ability to repay short-term, dollar-linked debt.
The peso’s collapse put intense pressure on Mexican companies and financial institutions. Mexico’s stock market also fell sharply as confidence deteriorated, while the disruption spread to other emerging markets in Latin America.
The United States and international institutions assembled a multibillion-dollar rescue package to help Mexico meet its obligations. The crisis is sometimes called the December Mistake in Mexico, but “Tequila Crisis” is the widely used English-language name.