These political and economic imbalances were offset by the use of international reserves, which led to an overvaluation of the nominal exchange rate over the real exchange rate.
main consequences
The devaluation of almost 300% of the Mexican peso against the dollar triggered months of high inflation, which in turn caused banks’ capital shortages, due to high interest rates and the crisis in commercial activity, forcing thousands of companies to to cut staff or even declare bankruptcy.
To deal with the emergency, the government resorted to a rescue package that consisted of the injection of millions of dollars from the International Monetary Fund (IMF) of millions of dollars.
These were some of the attempts to try to stabilize the price of the dollar and to contain the crisis so as not to affect other countries, mainly in Latin America.