1993 financial crisis

The 1993 financial crisis primarily involved Mexico experiencing a sudden collapse of its currency, the peso, which had been suffering due to economic instability and high debt levels. When investors lost confidence, they withdrew their money, leading to a sharp devaluation of the peso. This triggered widespread financial turmoil, inflation, and recession. The Mexican government responded with measures like currency devaluation and seeking international aid, notably from the U.S. to stabilize the economy. The crisis highlighted vulnerabilities in emerging economies balancing growth, debt, and investor confidence.