The IPC Index is the Mexican stock index commonly used to measure the market crash during the 1994 peso crisis.
The Índice de Precios y Cotizaciones, usually abbreviated IPC, is Mexico’s principal stock-market index. It tracks a selected group of large and actively traded companies listed on the Mexican Stock Exchange. During the peso crisis, Mexico devalued its currency in December 1994 after pressure on foreign reserves and the exchange-rate regime became unsustainable. The resulting loss of confidence affected Mexican equities, bonds, banks, and the wider economy.
The crisis is often called the Tequila Crisis, a nickname that refers to financial contagion across emerging markets rather than to a separate exchange. The United States and international institutions arranged a large support package to help Mexico meet its obligations and stabilize the peso. A common mix-up is identifying the IPC as a currency measure: it is an equity index, while the peso-dollar exchange rate was a separate and central indicator of the crisis.