In response the US government authorized another multi-billion dollar loan to Mexico to stabilize the peso so economic growth could continue without pause or consequence. Ten months after the bail out, the peso regained some of its value, and President Zedillo graciously reiterated Mexico's intentions to pay its debts. To avoid jeopardizing his reputation, he again delayed the devaluation until his successor Ernesto Zedillo took office in August 1994. By then Mexico had liquidated its foreign assets and had no alternative left except devaluation. Without informing or consulting anyone in the US government, Mr. Zedillo promptly devalued the peso by half.
Economists can offer endless speculation but no substantive answers on that topic.
As often happens, Mexico sets the trend other Latin and South American states follow. More financial trouble evolved in the region after the Mexico bail out. Ecuador, Guatemala, and other regional economies have gone so far as to accept the US dollar as legal tender. Until some measure of fiscal responsibility and tangible result of these loans are realized, no change in course is likely in the near future. Used under License.