Forgotten Fortunes Editorial · Article Discussion
Read the original research: The Crawling Peg, Tesobonos, and the 1994 Mexican Peso Crisis
Story overview: In 1994, Mexican authorities defended an overvalued crawling peg exchange rate band by swapping maturing peso Cetes into dollar-indexed Tesobonos. When reserves ran dry in December 1994, the peso’s collapse triggered a sovereign liquidity panic that required a nearly $50 billion U.S.- and IMF-led rescue.
Discussion question: At what point did a local problem become a wider financial threat?
Have a different interpretation? Share the evidence and explain why.
Editorial discussion starter, not an independent member endorsement.