Quetzal Currency to Dollar: A Comprehensive Overview

Introduction

The quetzal is the official currency of Guatemala and has been in circulation since 1925. It is abbreviated as GTQ and is divided into 100 centavos. The quetzal is pegged to the US dollar at a rate of 1 GTQ to 0.13 USD. This peg has been in place since 1987 and has helped to stabilize the Guatemalan economy.

Historical Exchange Rates

The following table shows the historical exchange rates of the quetzal to the US dollar from 1925 to 2023:

Factors Affecting the Exchange Rate

The exchange rate of the quetzal to the US dollar is influenced by a number of factors, including:

• Economic growth: Guatemala's economic growth rate has been relatively stable in recent years, averaging around 3% per annum. This growth has helped to support the demand for the quetzal and has contributed to its stability against the US dollar.
• Inflation: Inflation in Guatemala has been low in recent years, averaging around 2% per annum. This low inflation rate has helped to maintain the value of the quetzal and has made it more attractive to investors.
• Interest rates: The Bank of Guatemala has raised interest rates in recent months in an effort to combat inflation. This has made the quetzal more attractive to investors and has helped to support its value against the US dollar.
• Political stability: Guatemala has enjoyed a period of political stability in recent years, which has helped to attract foreign investment and has supported the value of the quetzal.

Uses of the Quetzal

The quetzal is used for a variety of purposes in Guatemala, including:

• Medium of exchange: The quetzal is the primary medium of exchange in Guatemala and is used for all types of transactions, from small purchases to large investments.
• Store of value: The quetzal is a store of value and is often used by Guatemalans to save for the future.
• Unit of account: The quetzal is the unit of account in Guatemala and is used to measure the value of goods and services.

Conclusion

The quetzal is a stable and widely used currency in Guatemala. It is pegged to the US dollar at a rate of 1 GTQ to 0.13 USD and is backed by the Guatemalan government. The quetzal is used for a variety of purposes, including as a medium of exchange, store of value, and unit of account.