Quetzal vs. Dollars: Has the Trend Reversed?

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.

Wednesday, September 26, 2018

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.

According to the Banguat's website on September 26, 2018, a reference exchange rate of Q7.70 was registered for one dollar, a rate that is 5% more than the Q7.32 reported on the same day of last year.

See "Efforts to stop appreciation of the Quetzal continue"

In relation to the actions taken by the monetary authority, the president of Banguat, Sergio Recinos, explained to Dca.gob.gt that " ...'In recent weeks we have seen an upward trend in the exchange rate, which has led us to participate in up to 5 auctions of US $8 million'."

Recinos added that " ... the gradual reduction recorded in family remittances and the 9% increase in imports up to July are exerting pressure on the exchange rate, which yesterday was quoted at Q7.70 against the dollar."

See also "Central Bank Intervenes to help Quetzal"

At the beginning of the year it was announced that a measure would be implemented to stop the appreciation of the Quetzal, which consisted of carrying out auctions of $50 million every Friday, until reaching a total intervention amount of $500 million.

Do you need more information about your business sector?

Request more information:








this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

Increasing Efforts to Reduce Appreciation of the Quetzal

June 2018

At the beginning of 2018 Banco de Guatemala authorized intervention in the foreign exchange market for up to a maximum of $500 million, and by last Friday $349 million had already been purchased.

With the aim of curbing appreciation of the currency against the US dollar, at the beginning of the year the Monetary Board authorized intervention in the exchange market with the purchase of $500 million, and according to Banco de Guatemala, 70% was used in the first semester of the year.

Guatemala and the Exchange Rate Intervention

March 2018

So far this year the Banco de Guatemala has intervened in the foreign exchange market buying $282 million, less than the $320 million bought in the same period in 2017.

As announced by the Central Bank authorities at the beginning of the year, the institution continues to implement actions to reduce the downward trend registered in the price of the local currency with respect to the Dollar. In January 2010 the Quetzal was quoted at Q8.40 for each dollar, and in January 2018 this figure reached Q7.34.

Guatemala: Quetzal Strengthens Against Dollar

July 2016

Strong growth of remittances and savings in the oil bill are two of the factors responsible for an increase in the supply of dollars which is putting downward pressure on its price against the quetzal.

Appreciation of the Guatemalan currency against the US currency is also due to lower demand for dollars in the local market, according to statements made by the president of the Bank of Guatemala to S21.gt. 

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.

 close (x)

Receive more news about 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


Looking for Importers and distributors of furniture

Mexican manufacturer of office furniture seeks importers and distributors interested in dealing their products in Central America.
PM Steele is a 100% Mexican company, with more than 67...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Oct 28)
Brent Crude Oil
39.670
Coffee "C"
108.9
Gold
1,873
Silver
23.140