Banking on the Greenback

Banking on the Greenback


Guatemala is adopting the United States dollar next month as its national currency in all but name, relegating its battered quetzal to almost certain oblivion. The Law of Free Negotiation of Foreign Exchange, which comes into force in May, allows any foreign currency to be used in Guatemalan business transactions. However, officials say the only currency Guatemalans are likely to want to use is the greenback. "It is the reverse of Gresham's Law," says Lizardo Sosa, president of Guatemala's Central Bank, "in which good money drives out the bad." In fact, the quetzal has maintained its value reasonably well as the government of President Alfonso Portillo has struggled to press ahea

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