Pressure Against the Quetzal Continues
The Banguat continued its intervention in the foreign exchange market by selling $34.9 million to stop the devaluation of the Quetzal.
Friday, March 27, 2009
Pressures against the quetzal could be a product of the decision taken in December by the Monetary Board and the Bank of Guatemala to loosen the rules of participation and the reduction in bank reserves which generated greater liquidity in the local currency that was channeled toward purchasing foreign currency, according to some analysts.
The Bank of Guatemala (Banguat) intervened in the foreign exchange market to halt the devaluation of the Quetzal.
Banguat is now authorized to sell up to $32 million a day; previously, it could offer only 24.
Despite constant complaints from the export sector, the Central Bank has been clear that devaluing the Colon against the dollar would mean a reversal of the exchange rate policy.
The current Superintendent of Banks of Guatemala, Edgar Barquin, will take over the presidency of the Central Bank of Guatemala on Friday.
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