The 1994 crisis that began when Mexico devalued the peso and saw international investment withdraw rapidly was the Tequila Crisis.
Mexico devalued the peso in December 1994 after pressure had built against its exchange-rate policy. Investors became concerned about Mexico's foreign-currency liabilities, current-account deficit, and declining reserves. The peso then lost much of its value, while Mexican financial markets suffered severe stress.
The crisis spread beyond Mexico because international investors reassessed other emerging markets. The United States helped organize a rescue package involving loans and guarantees, while the International Monetary Fund also provided support. Mexico adopted measures aimed at stabilizing its finances and restoring confidence.
The event is also known as the Mexican peso crisis or the December Mistake. It should not be confused with the 1997 Asian financial crisis, which began in Thailand and involved different currencies and economies.