Bank of Guatemala
Nomination and eligibility. The President and the Vicepresident of the Monetary Board, as well as of the Banco de Guatemala, arenamed by the President of the Republic, for a period of four years, as of the firstnomination made based on the current Law.
The Monetary Board, integrated according to the Political Constitution of the Republic of Guatemala, exercises the supreme management of the Banco de Guatemala
Board of directors with the exclusion of the president and vice presidentaare nominated by monetary board
As a public and autonomous institution, the Bank of Guatemala performs those functions inherent to its nature of central bank by designing and implementing the monetary policy that promotes the fundamental conditions in order to achieve and keep the stability of the general, level of prices, impelling the methodical economic development of the country.
Created in 1945 Bank of Guatemala is the country’s central bank. The bank is an autonomous entity responsible for all the functions that correspond to a central bank. In order to establish the monetary conditions that would be able to favor the methodical development. The bank promotes liquidity, solvency and good performance of the banking and financial institutions aswell as the proper distributions of the credits to keep the coordination of the economy and financial activities of the state with the monetary policy specially in its functions as banker and fiscal agent and advisor of the state. The most important legal isntrumsnets that rule the bank of Guatemala are its Organic Law, the monetary law and the bank law.
Organic law grants the central bank the safeguard of the external value and convertibility of national currency as well as a good management of the international monetary reserves and a favorable management of international transferences. the Bank of Guatemala considers today, as a principal mission, to carry out the monetary policy decided by the Monetary Board in order to preserve the national currency value and favor the price stability.
The bank is ran by the board of directors and overseen by the monetary board.
How are they appointed?
The president and vice president of the bank are both appointed by the Preseident of Guatemala
What are the duties of the bank?
Mission: To promote the stability in the general level of prices.
The Bank of Guatemala has as fundamental objective, to contribute to the creation and maintenance of the most favorable conditions to the orderly development of the national economy, to which, will propitiate the monetary exchange and credit conditions that promote the stability in the general level of prices. Article 3 of the Decree Number 16-2002 of the Congress of the Republic of Guatemala, Organic Law of the Bank of Guatemala.
The Organic Law of the Bank of Guatemala had in mind, on the one hand, to assign the Bank the function of a sole issuer, as a state bank as well as the mission of promoting the creation and maintenance of the most favorable monetary conditions to the methodical development of the national economy. The law makes emphasis in the adaptation of means of payment, and the credit policy to the national interest and the prevention of inflation, speculation and deflation. It also assigns the Bank, the promotion of the methodical management of national banking system, and the coordination of the state activities of economic and financial nature relating to the monetary market, particularly in those cases of fiscal and monetary policy.
Functions. The Banco de Guatemala has, among others, that
determine the present Law, the following functions:
a) To be the exclusive issuer of the national currency;
b) Procure the maintenance of an adequate level of liquidity in the banking
system, through the use of the previewed instruments of the present Law;
c) Procure the good functioning of the payment systems;