Guatemala's Quetzal appreciates in value

Guatemala's currency has appreciated in value more than any other in Central America, using an index that compares prices of basic products with its neighboring countries in the region.

Thursday, June 26, 2008

The Executive Secretary of the Central American Monetary Board said in his report on indicators said that the quetzal maintained an index of appreciation of 73.6 in May.
Under this indicator, 100 is defined as the average. Any lower number signifies an appreciation in the value of the currency, and a larger number shows a devaluation.
The index measures the currency in terms of purching power parity rather than directly with the U.S. dollar.
However, as of June 26, the U.S. dollar was worth 7.52 quetzals, up from 7.76 quetzals to the dollar in January.
The quetzal was the only currency to appreciate in value. The Honduras lempira was second in the region at 105.7 on the scale, while Costa Rica was third at 110.6, followed by Nicaragua at 11.23 and El Salvador at 119.3.
Panama uses the U.S. dollar as its currency.

More on this topic

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.

Appreciation of Quetzal in Guatemala

October 2014

The increase in remittance income is the main factor that has led to the value of the local currency against the dollar rising to its highest level in the past two years.

While in other Central American countries local currencies have tended to lose value against the dollar, in Guatemala the strong flow of foreign exchange into the country has put upward pressure on the supply of dollars causing an appreciation of the quetzal, which was quoted on 5 October at Q7,63 to the dollar.

Change in Exchange Rate Trend in Guatemala

October 2014

Since August the quetzal has been appreciating against the dollar, mainly due to an increase of foreign exchange coming into the country in the form of remittances.

Although in the first eight months of the year the exchange rate against the dollar was stable, from August the trend began to change and the national currency began to appreciate.

Guatemala: Quetzal Depreciates Again

June 2011

Dollar purchases by the Central Bank have helped raise the value of the dollar against the quetzal.

The private sector expects increased competitiveness if the dollar continues to increase its value against the quetzal, as has happened in recent weeks.

This was noted by Sergio de la Torre, private sector representative at the Monetary Board of Banguat, who said that the appreciation being suffered by the Guatemalan currency against the dollar is making them less competitive compared to their trading partners.

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