Mexico’s stock exchange suffered the 1994 crash associated with the Tequila Crisis.
Mexico’s financial crisis began in December 1994 when the government devalued the peso after pressure on its foreign-exchange reserves. Investors quickly reassessed Mexican assets, and the Bolsa Mexicana de Valores fell sharply. The crisis spread through financial markets and affected other emerging economies, especially those viewed as exposed to similar risks.
Mexico had accumulated substantial short-term dollar-linked debt, including tesobonos, while political uncertainty and a current-account deficit weakened confidence. When the peso lost value, the burden of servicing foreign-currency obligations increased. The United States and the International Monetary Fund assembled a rescue package worth tens of billions of dollars to help prevent a broader default.
The Tequila Crisis is also called the Mexican peso crisis. It should not be confused with the later 1997 Asian financial crisis, although both showed how quickly investor withdrawals could spread across emerging markets.