The 1994 Mexican financial crisis that caused sharp falls in emerging-market stocks after the peso was devalued was the Tequila Crisis.
Mexico devalued the peso in December 1994 after pressure on its exchange-rate regime and a rapid loss of foreign reserves. Investors reassessed Mexican debt and other emerging markets, producing capital outflows and market declines across several countries. The crisis was intensified by Mexico’s reliance on short-term, dollar-linked debt known as tesobonos.
The United States organized a rescue package with international partners, providing guarantees and loans that helped Mexico meet its obligations. The peso eventually stabilized, but Mexico experienced a severe recession and financial stress. “Tequila Crisis” refers specifically to the Mexican episode and its international spillovers; it is not the same as the Asian Financial Crisis of 1997–1998 or the Latin American debt crisis of the 1980s.