Emerging Markets Rates and Currencies Handbook

to T+2. The Official Spot rate is published in the Central Bank’s Official website (www.banguat.gob.gt) . Regulation allows clients to have deposit accounts in foreign currencies, but the GTQ is only liquid against the USD. Other currencies should be crossed against USD. Benchmark spot orders are not available in the Guatemalan GTQ market. Even though the forward market has been developing for the last 10 years, the forward market currently provides poor liquidity and low activity levels. Only 4 of the 12 banks operating in the country offer this instrument. The low volatility of the GTQ offers little incentive for an active and liquid local FX derivative market. There is no active interbank market for forwards onshore, only Citibank makes markets in forwards. Convertibility The GTQ Currency is fully convertible. Interest Rate Rates trading is mostly concentrated in the cash market. Bonds issued by the Government of the Republic are mostly bought by market participants as a buy and hold strategy. There is no swap curve as the market has not developed yet a floating benchmark. Banks rely on the repo and reverse repo market to address short term liquidity needs, as secondary markets for government securities are not fully developed. Citi makes markets in short and long term rates as needed by corporate clients. FX Spot FX Forwards NDFs FX Options Interest Rate Swap Interest Rate Options XCCY swaps Market Overview Onshore Market    ✗ ✗ ✗ Available on a case by case basis Offshore Market    ✗ ✗ ✗ Available on a case by case basis Onshore Volume (MM USD Daily) 225 1 1 - 3 N/A N/A N/A N/A Offshore Volume (MM USD Daily) 3 - 5 Negligible 1 - 3 N/A N/A N/A N/A Onshore Max Tenor (Or Typical Tenor T+0 1 years 1 year N/A N/A N/A N/A For Spot) Offshore Max Tenor (Or Typical Tenor T + 2 1 years 1 year N/A N/A N/A 5 years, on case by case basis For Spot) Onshore Typical Deal Size (MM 0.5 - 1.5 2 2 N/A N/A N/A N/A USD) Offshore Typical Deal Size (MM 0.5 - 1.0 Episodic 0.1 - 0.5 N/A N/A N/A N/A USD) Onshore CitiFX Pulse  ✗ ✗ ✗ ✗ ✗ ✗ Capabilities Offshore CitiFX Pulse Capabilities  ✗ ✗ ✗ ✗ ✗ ✗ Source: Citi indicative information Market opening hours and liquidity during the day Fixing The Fixing rate used is the Official Rate published by the Central Bank. This rate is the weighted average of all transactions above $20K traded on the Central Bank’s SPID system (Sistema Privado Interinstitucional de Divisas), a day before its publication. Bloomberg Ticker: {GTQ BDEG Curncy}. The fixing rate used to settle FX NDFs is set one day prior to NDF settlement (T-1). Regulation Offshore Restrictions: Clients are free to trade in either direction and size depending on liquidity, as per “Ley de Libre Negociacion de Divisas”. Trades must be executed through a regulated financial institution or registered exchange