Honduras announces changes for operations in US dollars

The Central Bank announced that it will temporarily suspend all liquid operation in dollars in the banking system.

Wednesday, January 14, 2009

Latribuna.hn reports: "The purpose of the measures is to alleviate pressure on the short term markets for financing in US dollars.

This was announced yesterday by the president of the Bank, Edwin Araque, who said that they have reduced the monetary policy rate from 9 to 6.75 points."

More on this topic

Honduran Central Bank reduces reserves

November 2008

Starting on December 6, the legal reserves in local currency will be reduced to 0% and will be lowered by five points for deposits in foreign currency.

The measure, announced by the president of the Central Bank, Edwin Araque, seeks to increase liquidity in the financial system by some $251 million (4.8 billion lempiras) which the banks will have available to offer in credit.

Honduras will avoid IMF pressure to devalue the Lempira.

December 2008

According to the president of the BCH, Edwin Arague, the economic sector of the country will not negotiate any stand by agreement with the IMF since the entity is pressuring them to devalue the local currency.

Araque said that there are no conditions in Honduras to devalue the lempira, since, from a financial point of view, the economic has remained stable and so the measure proposed by the IMF will not be executed, he said.

Guatemala's Monetary Committe leaves rates unchanged

June 2008

Guatemala's Monteary Committe kept the leading seven-day interest rate at 6.75 percent. the rate is one of the government's tools to control prices.

Maria Antonieta Del Cid de Bonilla, present of the Bank of Guatemala (Banguat) and of the Monteray Committee, said during a press conference that the decision was made unanimously.

The destiny of the dollar, the euro, the yuan and the colon

September 2008

In order to reduce the effects of the economic slow down, some politicians are turning to monetary policy or the Central Bank. They believe that by printing more money there will be more wealth, more investment and more employment.

When a Central Bank, such as the US Federal Reserve (FED) or the European Central Bank, increases the amount of money in circulation it is done by reducing interest rates.

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