Which 1994 Mexican financial crisis followed the peso's devaluation and became known as the Tequila Crisis?

The 1994 crisis following Mexico's peso devaluation was the Mexican peso crisis, also called the Tequila Crisis.

Mexico devalued the peso in December 1994 after pressure on its foreign-exchange reserves and a widening current-account deficit. Investors rapidly withdrew capital, and the currency lost much of its value. The crisis spread through financial markets and threatened wider instability in emerging economies.

The United States and the International Monetary Fund organized a rescue package worth about $50 billion. The episode showed how a fixed or tightly managed exchange rate could become vulnerable when reserves were insufficient and confidence disappeared. It is distinct from the 1997 Asian financial crisis, although both involved currency pressure, capital flight, and international financial assistance.