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Article: As Peso Slips, Mexicans Fear a Repeat of 1994's Economic Crisis
- Article from:
- The Washington Post
- Article date:
- November 2, 1996
- Author:
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When Mexico devalued its currency in December 1994, it caused
global economic jitters that analysts termed "the tequila effect."
Today, the tequila appears to have worn off, but for Mexicans and
their shaky peso, a throbbing two-year hangover won't go away.
After holding steady for most of the year, the peso dropped
more than 5 percent in the last month, closing today at 7.95 pesos
to the dollar, down from 7.54 on Oct. 1. On Wednesday, the peso
dipped to 8.05 to the dollar, its lowest exchange since the
devaluation.
The Bolsa -- Mexico's stock market -- has followed the
currency slide, closing today at 3,255.82 points -- down 5 percent
from its historic high of 3,433.75 on Aug. 27. ...