In this article, We learn about "Guatemalan Quetzal (GTQ)".Let's Go!
The Guatemalan Quetzal (GTQ) is the official currency of Guatemala, a country located in Central America.
The Guatemalan quetzal was introduced in 1925, replacing the Guatemalan peso at an exchange rate of 1 quetzal to 60 pesos.
The Bank of Guatemala is responsible for issuing and administering the Guatemalan Quetzal.
Exchange Rate System
The Guatemalan quetzal operates under a managed floating exchange rate system, where its value relative to other currencies is determined by market forces such as supply and demand.
The Bank of Guatemala may intervene in the foreign exchange market when necessary to maintain stability or prevent excessive volatility.
This system allows the Guatemalan Quetzal to respond to external shocks and changes in global market conditions while maintaining a degree of stability.
Segments and Denominations
The
Guatemalan quetzals are subdivided into 100 smaller units called centavos.
Coins are available in denominations of 1, 5, 10, 25 and 50 cents, as well as the 1 quetzal coin.
Banknotes are available in denominations of 1, 5, 10, 20, 50, 100 and 200 quetzales.
Economy and Challenges
Guatemala’s economy is diversified, with various sectors making significant contributions, including agriculture, manufacturing, and services.
Agriculture, especially the production of coffee, sugar, bananas and vegetables, is an important sector that provides employment to a large part of the population.
Manufacturing also experienced growth, with a focus on textiles, food processing and construction materials.
However, Guatemala faces economic challenges such as high levels of poverty and inequality, a large informal sector, and vulnerability to natural disasters and external shocks.
The country is also affected by problems such as crime, corruption and weak governance that can hinder economic growth and investment.
The Guatemalan government has been committed to formulating policies to promote economic growth, economic diversification and solve social problems.
Summary
In summary, the Guatemalan quetzal is the official currency of Guatemala and is administered by the Bank of Guatemala.
The currency operates on a managed floating exchange rate system, with its value determined by market forces and potential central bank intervention.
The Guatemalan Quetzal is subdivided into points and issued in a variety of banknotes and coins.
Guatemala has a diversified economy with significant contributions from various sectors, but the country faces challenges related to high levels of poverty and inequality, a large informal sector, and vulnerability to natural disasters and external shocks.
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