Banguat Defends Quetzal with $19.2 Million

The Bank of Guatemala (Banguat) intervened in the foreign exchange market to halt the devaluation of the Quetzal.

Wednesday, March 18, 2009

The bank placed $19.2 million at an exchange rate of Q8.08 and Q8.10; this being the first time it has intervened in the market since December 29, 2008, when it auctioned $3.5 million.

In an article in elPeriódico of Guatemala, it was reported: "For some analysts, the devaluation of the quetzal against the dollar has been driven indirectly by the Monetary Board and the Bank of Guatemala, after it decided to make the rule for participation more flexible when the average exchange rate of the previous 5 days varied from 0.5% to 0.75%, as well as having loosened the bank's financial reserve requirements which generated greater liquidity availability and this was channeled towards the purchase of foreign currency."

More on this topic

There are Too Many Dollars in Guatemala

September 2016

In the first nine months of the year the Bank of Guatemala has intervened in the exchange market with $1 billion in order to keep the Quetzal from appreciating further.

The increasing flows of remittances coming into the country are the main reason behind the appreciation of the Quetzal against the Dollar.

Guatemala: Banguat Authorized to Sell More Dollars

October 2009

Banguat is now authorized to sell up to $32 million a day; previously, it could offer only 24.

The measure, approved by the Monetary Board (Junta Monetaria), intends to give Banguat, the Central Bank of Guatemala, greater flexibility to control the depreciation of the Quetzal versus the Dollar.

Pressure Against the Quetzal Continues

March 2009

The Banguat continued its intervention in the foreign exchange market by selling $34.9 million to stop the devaluation of the Quetzal.

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.

Rise in Dollar Attributed to Speculation in Guatemala

March 2009

The monetary authority of Guatemala, Banguat, continued to intervene in the market by selling dollars to address a rise that could be due to speculation.

Authorities and analysts argued about the causes for the appreciation of the US currency for which there are apparently no clear causes.

 close (x)

Receive more news about Central Banking

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones

Pacific Credit Rating Guatemala

Organization that operates in Costa Rica, El Salvador, Guatemala and Panama.
Phone: (502) 2261 7066

Company Profile

Stock Indexes

(Nov 22)
Dow Jones
S&P 500


(Nov 24)
Brent Crude Oil
Coffee "C"