Monetary Policy in Guatemala: History of a grave mistake
The world is head in one direction, Guatemala in the next. While Guatemala is destroying its business capacity by restricting the means of payment, the rest of the work is doing the opposite.
Wednesday, September 17, 2008
Before 1871 the Guatemalan economy was expressed in terms of the bills and coins in circulation plus money in the bank. Today this is known as the monetary base. After the reforms, not only coffee produce economic protagonism, but the banks also, via financial intermediation, which is the reason why the cash deposits on hand became an important liquidity component.
Taking into account inflation expectations, the Monetary Board has increased the leading interest rate by 0.25% , going from 5% to 5.25%.
Guatemala's business sector has expressed disappointment with some of the monetary policy measures that were imposed to deal with inflation.
The Monetary Board, at its meeting on July 31, decided to keep the level of the monetary policy leading interest rate at 5.25%.
Managed by CABI and financed by the Soros Foundation, the Mirador Monetario will contribute to transparency in the Financial System of Guatemala.
- Daily Update
- Government Purchases
- Classified Ads
- Indexes & Statistics
- Press Releases
- Events Calendar