Emerging Markets Rates and Currencies Handbook

Guatemala (GTQ - Guatemalan Quetzal) Citi in Guatemala Citi Guatemala, established in 1974, offers a wide array of first-class products and services to its clients and is the number-one choice for Corporate & Investment Banking in the country. Citi, with its unparalleled expertise in transactional and structured solutions for large companies, multinational companies, financial institutions, the public sector and key local industries, is a trusted strategic advisor to Guatemalan companies. Citi applies its mission to become the leading international bank using competitive advantages by providing services to key Guatemalan companies with high transactional needs and leveraging Citi’s global footprint. Citi Guatemala has been given prestigious awards from key financial publications, including Best Corporate/Institutional Internet Bank. All clients are corporates (agricultural and multinational companies). Market Overview Guatemala’s GTQ is fully convertible, and there are no restrictions to trade FX in the country. The Central Bank (Banguat) manages a “dirty float” FX regime, in which the Central Bank intervenes when intra-day FX rates exceed the five-day moving average by +/- 0.90% (in current central bank policy). With these interventions, Banguat has the mandate to reduce the volatility, not to change the market trend. This policy has contributed to relatively low FX volatility compared to other Emerging Markets countries. Historically, GTQ appreciation is observed during the first six months of the year, due to export- related flows. Around USD 255MM are traded daily in the Spot Market, which includes Corporate and Professional Market trades. By regulation, all Spot trades are reported to the Central Bank’s FX system SPID (Sistema Privado Interinstitucional de Divisas). Most of the Spot trades are settled same day value, but GTQ can be traded from T+0 217