Economy & Business - January 2006

The Banco de Guatemala intervened on 16 January to prevent the Quetzal surging against the dollar. The central bank president, Lizardo Sosa, said that the bank was changing its practices slightly so that it could act before the situation got out of control. Under the current rules, the central bank can buy up to US$10m a day from the foreign exchange market at half a percentage point less than the average closing price for the past five days. If it is filled at this rate it can then offer another US$10m at 0.25% less.