Tequila Crisis — Peso Devaluation

Three weeks after Zedillo's inauguration, Mexico devalued the peso by 15%, triggering capital flight and a financial crisis. The peso lost half its value within months. GDP contracted 6.2% in 1995. The U.S. organized a $50 billion rescue package. The crisis deepened poverty and demonstrated the fragility of Salinas's neoliberal model. It also severely damaged PRI's economic credibility.