Of course this lowered their reserves and increased their obligations. The US and the IMF did step in and made loans to Mexico. Although the economy suffered temporarily it did rebound. Asian Contagion of 1997 May 1997 the market began betting against the Thai bhat. It was pegged to a basket of currencies.
Speculators bet billions and outspent the government.
The government eventually gave up and allowed the currency to float. These troubles spread quickly around the region. Indonesia and Korea were soon suffering from the same symptoms. Then teh problems got serious and began to spread. Banks and others around the world began to get very worried that they would be next.