Uncertainty Affects Exchange Rate

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.

Monday, July 29, 2019

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

Data from the Banco de Guatemala indicate that between July 23 and 29 the price of the Quetzal with respect to the US dollar increased from Q7.64 to Q7.68, which according to the authorities is explained by the uncertainty generated by the possible sanctions against the country.

You may be interested in "Uncertainty Increases over Relationship with the U.S.

Sergio Recinos, president of the Bank of Guatemala, explained to Prensalibre.com that "... in the economic measures announced, the technical bodies analyzed that there could be an impact on the balance of payments and on the exchange rate that this slight "upward leap" manifested."

Also see "Concern about the Future of the Relationship with USA

The article adds that "... The movement of the four cents is due to this factor, i.e. it is based on the perceptions of economic agents. Although the adjustment is slight, uncertainty persists."

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