Legal Tender in Honduras: Canadian Dollar and Yuan
The Central Bank of Honduras said the Canadian dollar and the yuan, have been added to the list of currencies that can be deposited in foreign currency accounts.
Friday, April 13, 2012
The business sector will directly benefit from by this measure, which facilitates trade with the countries issuing those currencies.
The resolution by the Board of the Bank of Honduras states:
"... That in order for national depository institutions to have a greater variety of assets where they can keep their deposits and investments from abroad, it is deemed appropriate to extend these options to suit the prevailing conditions and instruments in the market and to have better controls over their administration. "
"For purposes of the Regulations for the Management of Deposit Accounts in foreign currency, institutions in the national financial system are authorized by the Financial System Act, to be able accept funds through the establishment of Deposit Accounts Foreign Currency in one or more of the following currencies: U.S. Dollar, Yen, Euro, Swiss Franc, Yuan, British Pound and Canadian Dollar. The operation of such accounts will be subject to the provisions of that regulation. "
"According to the provisions of Article 8 of the Regulation, the parent company or subsidiaries of banks or foreign financial institutions, which hold investments, must be domiciled in countries that have a minimum credit rating of Aa3 on its sovereign debt. Exceptions to this rating condition are made for investments in banks domiciled in Central America, Panama and the Dominican Republic, which in their entirety can be maintain up to 10% of total foreign currency investments. In the case of investments values, they must be registered with the Public Registry for the Securities Market."
Following the approval of the legal framework that recognizes Bitcoin as a legal tender in El Salvador, one out of two local businessmen are concerned that the circulation of the cryptocurrency is mandatory and one out of three are distrustful of this change in the laws.
The Chamber of Commerce and Industry of El Salvador carried out a survey among its members, businessmen in general and citizen consumers to know the expectations of the productive sector regarding the implementation of the cryptocurrency.
The stock price of Copa Holdings has fallen and at the same time the airline has stopped accepting Argentina's currency for ticket sales.
Restrictions in Argentina for converting local currency to dollars and for sending funds abroad, have now forced American Airlines and Air Canada to take the same measure implemented by Copa.
In the next two years, the RMB or Chinese yuan could become one of the major currencies used in global trade.
This was said in London by Douglas Flint, chairman of HSBC Holdings SA, adding that "the renminbi (RMB) will be a growing part of normal business in the everyday life for anyone who trades or invests in China."
The government of Panama is investigating in conjunction with the banking sector and representatives of the European Union how to facilitate financial transactions with the Euro and other foreign currencies.
A statement by the Presidency of Panama reads:
Mechanisms Sought to facilitate financial transactions in foreign currencies