The stock price of Copa Holdings has fallen and at the same time the airline has stopped accepting Argentina's currency for ticket sales.
Restrictions in Argentina for converting local currency to dollars and for sending funds abroad, have now forced American Airlines and Air Canada to take the same measure implemented by Copa.
As in Orwell’s fable, Central Banks assume the task of deciding who, among equals, “is more equal than others”.
Paul Laurent Solís analyzed the anathema that has become the label “tax haven”, and remarked the role Central Banks have assumed in Central American economies, especially when they become tools for whichever government that happens to be in power.
“When markets are moving a lot, be prudent. When they remain still, be double prudent”.
In countries with domestic currencies, changes in the exchange rate are always a reason for concern. Economic and financial agents are eager to understand why such fluctuations occur, in order to hedge and if possibly benefit, from them.
Paulo de León, from The Blackbox, compared the price of the Guatemalan Quetzal versus the Euro for the past 10 years.
One of the top discussions of the annual assembly of the Latin American Banking Federation is how to deal with increased commerce with China.
FELABAN's assembly is taking place in Miami, Florida, from November 15th to 17th. One of its highlights is the participation of several executives from the largest Chinese banks.
Capitales.com reports that John Rodríguez, FIBA president (Florida International Bankers Association), said that "there are many trade agreements between China and Latin America. It is important to analyze which business advantages Chins offers, and to understand the details of the 'RNB' currency, which is used by the Asian nation in direct trades with Latin America".
"I wish that it would be someday!" said Mexican president Felipe Calderon, pointing out that Latin America has very distinct economic and monetary policies.
He also highlighted the various exchange rate and monetary systems. "There are countries which have their own currency and the corresponding seigniorage; and there are countries which used other countries' currencies, such as El Salvador or Ecuador, which have their economies in US dollars.
Not only the euro and the pound sterling have been strengthening against the US dollar, so have Central American currencies, above all Guatemala's quetzal.
The Honduran lempira and Costa Rica's colon have also been gaining against the dollar, though not by as much as the quetzal.
The flow of hard currency from the United States to Central America has stepped up considerably in recent months, bolstering the value of the region's currencies.
The general manager of the National Bank of Panama, Juan Dianous, said he was interested in the possibility of using the euro as a second currency in Panama.
At present there are numerous commercial businesses, hotels and restaurants that accept euros, and several financial institutions carry out operations and open accounts in euros.
Experts say that the dollar devaluation has diminished the purchasing power of Panamaneans, and that it would be feasible to create a financial center where customers could set up their own charge accounts in euros.