Friday, March 20, 2009

Dollar Remains High Despite Banguat Intervention

The upward trend of the quetzal against the dollar continues, despite the intervention of the Bank of Guatemala (Banguat).

According to statistics from Banguat, the exchange rate began a steady rise in October of last year. On October first, the exchange rate was Q7.49657 for $1, but in the following months the value increased consistently until it reached Q8.01579 on February 25, 2009.

Last week was no exception and the increase in the value of the dollar continued. Although it fell on Tuesday, the next day it resumed the uptrend.

The spike in exchange rate of the quetzal hurts those making payments in dollars, such as for houses, businesses that have loans, and importers, and favors those receiving remittances, exporters, and those who earn dollars because they exchange into more quetzales.

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