2019 Article IV Consultation-Press Release and Staff Report


2019 Article IV Consultation-Press Release and Staff Report

Fund Relations

(As of March 31, 2019)

Membership Status: Joined: December 28, 1945, Article VIII

article image
article image

Outstanding Purchases and Loans:


Latest Financial Arrangements:

article image

Projected Payments to Fund1

(SDR Million; based on existing use of resources and present holdings of SDRs):

article image

Safeguards Assessment. Under the Fund’s safeguards assessment policy, the Bank of Guatemala was subject to an assessment with respect to the Stand-By Arrangement approved on April 22, 2009 (IMF Country Report No: 09/143). The assessment, which was completed in September 2009, found that the Bank of Guatemala has strengthened safeguards in the areas of transparency of financial reporting and the management of foreign exchange reserves. Recommendations were made to further strengthen the bank’s governance and independence.

Exchange Rate Arrangement. Since March 1994, Guatemala has had an arrangement based on an interbank foreign exchange market in which authorized financial institutions buy and sell foreign exchange at market-determined rates. Financial institutions authorized to operate in the foreign exchange market include commercial banks, finance companies, and exchange houses. Guatemala has a de jure floating exchange rate arrangement, although the Bank of Guatemala (Banguat) may intervene to limit volatility in the nominal exchange rate without affecting its trend. Banguat intervenes through foreign exchange auctions based on a symmetric and public rule that limits daily volatility. Effective January 1, 2018, the fluctuation margin (added to or subtracted from the five-day moving average of the exchange rate) that determines whether Banguat may intervene was increased to 0.80 percent (previously 0.75 percent) as part of Banguat’s commitment to increase exchange rate flexibility. Banguat may also intervene outside the scope of this rule whenever the nominal exchange rate shows unusual volatility, but this instrument has only been used once during the GFC. From January 2018, the exchange rate followed a depreciating trend within a 2-percent band against the U.S. dollar, but stabilized since September 2018. Therefore, the de facto exchange rate arrangement was reclassified twice in 2018: (i) from “stabilized” to “crawl-like”, effective January 17, 2018, and (ii) from “crawl-like” to “stabilized”, effective September 26, 2018. As of March 31, 2019, the reference exchange rate was Q7.68 per U.S. dollar. Guatemala has accepted the obligations of Article VIII, Sections 2, 3 and 4, and its exchange system is free of restrictions on the making of payments and transfers for current transactions.

FSAP Participation. An FSAP Update was carried out during March 18-April 1, 2014, and the Financial System Stability Assessment was discussed by the Executive Board on September 12, 2014, at the time of the 2014 Article IV consultation.

Article IV Consultation. The last Article IV consultation was concluded by the Executive Board on May 25, 2018.

Resident Representative. Mr. Gerardo Peraza is the Regional Resident Representative for Costa Rica, Guatemala, and El Salvador, and is based in Guatemala.

Technical Assistance 2011–19

(updated May 2019)

article image
article image
article image

Statistical Issues

(As of April 2, 2019)

article image
article image

Table of Common Indicators Required for Surveillance

article image

Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments. Provision of this data is hampered by lack of capacity while ongoing efforts, including the recently requested TA advice from the Fund on fiscal transparency, are made to strengthen it. Certain progress has been made in the following areas: defining an action plan to improve fiscal transparency; taking the decision to implement the GFSM 2014 as part of the fiscal transparency effort and designing an action plan for its implementation; creating the open government data portal (https://datos.minfin.gob.gt/) with data on budget formulation and execution, grants to municipalities; publication of fiscal risks as an appendix of Budgets 2017 and 2018; and working on a national publication of consolidated nonfinancial public sector (on a GFSM 1986 format): www.minfin.gob.gt.

Including currency and maturity composition.

Includes external gross financial asset and liability positions vis-à-vis nonresidents.

Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).


When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

Guatemala: 2019 Article IV Consultation-Press Release and Staff Report
Author: International Monetary Fund. Western Hemisphere Dept.