Guatemala: Exchange Rate Up to Q7.75

Between March 23 and 24 the price of the Quetzal vs. Dollar rose from Q7.67 to Q7.75, which is attributed to the expectations of a possible economic slowdown, due to the impact of the Covid-19 crisis.

Tuesday, March 24, 2020

The expectations of a decrease in the income of family remittances, the time that the international economy could be depressed and the component of fear in the agents, are other causes of the upward pressure that the exchange rate has reported in the last hours.

See "Coronavirus: Forecasts for Business in Central America"

Sergio Recinos, president of the Bank of Guatemala, told that it has been reported "... an extraordinary pressure on the exchange rate with a quite strong demand and from that account the rule for the sale was activated with $50 million, however, that left an unsatisfied demand of $25 million."

The official added that foreign exchange figures for remittances remain high and exports could experience a slowdown.

Julio Hector Estrada, former Finance Minister, explained that "... as in every time of crisis, companies are recommended to have cash on hand, so they have authorized lines of credit with banks that are programmed, but not disbursed. These lines are requested as they are needed."

Coronavirus: How do the outlook for companies in Guatemala change?

We prepared for our clients the report "Information System: Covid-19 and Business Outlook" which helps companies to measure the impact that the crisis will have on their activity in the coming months.

Click here to request access to this report.

More on this topic

Costa Rica: Dollar Price Rises to ₡581.8

March 2020

In the last 15 days, the price per dollar in the wholesale market has risen ₡16, which can be explained by economic uncertainty and people's preference for buying dollars.

According to data from the Central Bank of Costa Rica (BCCR), a rising trend has been reported in recent weeks.

Uncertainty Affects Exchange Rate

July 2019

Although Guatemala and the U.S. have already signed an agreement on migration issues, the exchange rate reported a slight increase and the upward trend is expected to continue over the next few days.

President Trump's warning to Guatemala to impose export tariffs and taxes on remittances and transfers had a direct impact on the exchange market.

Quetzal vs. Dollars: Has the Trend Reversed?

September 2018

Since the beginning of the year Banco de Guatemala has intervened in the foreign exchange market buying foreign currency in order to curb appreciation of the local currency against the dollar, but in recent weeks it has been selling currencies in order to minimize depreciation.

In recent weeks the exchange rate of the Quetzal against the US dollar has been trending upwards, which has forced the Bank of Guatemala (Banguat) to sell foreign currency in the foreign exchange market. So far this year, up until September 24, it has had to intervene selling $402 million worth of foreign currency.

Guatemala: Quetzal Continues to Appreciate Against Dollar

January 2015

In order to moderate the decline in the dollar the Bank of Guatemala has made two interventions so far in 2015.

During 2013 the Guatemalan currency gained about 3% against the dollar, making exports less competitive. Due to the fact that the trend has continued, the Bank of Guatemala has started to apply the rule of exchange participation in order to moderate behavior of the currency.