Mexican peso crisis of 1994

E5138

currency crisis economic crisis financial crisis sovereign debt crisis

The Mexican peso crisis of 1994 was a severe currency and financial crisis triggered by a sudden devaluation of the peso, leading to capital flight, a deep recession in Mexico, and a major international bailout.

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Observed surface forms (1)

Surface form	Occurrences
Tequila Crisis	1

Statements (50)

Predicate	Object
instanceOf	currency crisis ⓘ economic crisis ⓘ financial crisis ⓘ sovereign debt crisis ⓘ
alsoKnownAs	Mexican peso crisis of 1994 ⓘ surface form: Tequila Crisis
bailoutAmount	approximately 50 billion US dollars ⓘ
country	Mexico ⓘ
describedBySource	International Monetary Fund ⓘ surface form: International Monetary Fund reports Congressional Research Service ⓘ surface form: U.S. Congressional Research Service reports economic history literature ⓘ
endTime	1995 ⓘ
followedBy	economic reforms in Mexico ⓘ implementation of austerity measures in Mexico ⓘ restructuring of Mexican public debt ⓘ
hasCause	declining foreign exchange reserves of Mexico ⓘ heavy reliance on short-term dollar-denominated debt (tesobonos) ⓘ large current account deficit ⓘ loss of investor confidence ⓘ political instability in Mexico in 1994 ⓘ sudden devaluation of the Mexican peso ⓘ
hasEffect	banking sector distress in Mexico ⓘ capital flight from Mexico ⓘ contagion to other emerging markets ⓘ deep recession in Mexico ⓘ increase in Mexican public debt burden ⓘ losses for international investors holding Mexican assets ⓘ rise in Mexican inflation ⓘ sharp depreciation of the Mexican peso ⓘ sharp increase in Mexican interest rates ⓘ
location	Mexico ⓘ
mainSubject	Mexican peso ⓘ
partOf	history of Mexico ⓘ history of financial crises ⓘ
pointInTime	December 1994 ⓘ
receivedSupportFrom	Bank for International Settlements ⓘ International Monetary Fund ⓘ United States government ⓘ World Bank ⓘ
significantParticipant	Bank of Mexico ⓘ Government of Mexico ⓘ International Monetary Fund ⓘ Bill Clinton ⓘ surface form: President Bill Clinton President Ernesto Zedillo ⓘ United States Department of the Treasury ⓘ surface form: U.S. Treasury Department United States government ⓘ World Bank ⓘ private international investors ⓘ
startTime	1994 ⓘ
triggeredBy	abandonment of the peso exchange rate band ⓘ announcement of peso devaluation by the Mexican government ⓘ

Referenced by (2)

Full triples — surface form annotated when it differs from this entity's canonical label.

Mexican peso crisis of 1994 → alsoKnownAs → Mexican peso crisis of 1994 ⓘ

this entity surface form: Tequila Crisis

Asian financial crisis of 1997–1998 → precededBy → Mexican peso crisis of 1994 ⓘ