Guatemalan Quetzal (GTQ)

Guatemalan Quetzal (GTQ)

GTQ is the foreign exchange abbreviation for the Guatemalan _quetzal._ Despite boasting one of the largest economies in Central America, Guatemala suffers from high rates of wealth inequality, with more than half the country living below the national poverty line according to U.S. Central Intelligence Agency statistics. Since 2018, the U.S. State Department has issued a travel advisory urging that potential tourists reconsider their travel plans due to high levels of violent crime and gang activity present in the country. The government established the new Bank of Guatemala in 1945, and that entity took over the issuance of currency from the Central Bank of Guatemala in 1946. The Central Bank of Guatemala, established in 1926, issued the currency at a rate of 1 quetzal to 60 pesos at the time. The quetzal first appeared in 1924, named after the quetzal bird in order to commemorate the ancient Mayans’ use of the bird’s feathers as currency.

The Guatemalan quetzal (GTQ) is the official currency of Guatremala, first appearing in 1924.

What is the Guatemalan Quetzal (GTQ)?

GTQ is the foreign exchange abbreviation for the Guatemalan quetzal. It is the official currency of Guatemala, and is subdivided into 100 centavos.

As of December 2020, 1 GTQ is worth US $0.13.

The Guatemalan quetzal (GTQ) is the official currency of Guatremala, first appearing in 1924.
The quetzal is a free floating currency, but was once pegged to the U.S. dollar and before that adhered to the gold standard.
Guatemala is the largest economy in Central America, and tenth-largest in Latin America.

Understanding the Guatemalan Quetzal

The quetzal first appeared in 1924, named after the quetzal bird in order to commemorate the ancient Mayans’ use of the bird’s feathers as currency. Modern banknotes prominently feature pictures of these long-tailed birds. In 1925, the currency officially replaced the Guatemalan peso, which had in its turn been issued in 1859 to replace the Central American real.

The Central Bank of Guatemala, established in 1926, issued the currency at a rate of 1 quetzal to 60 pesos at the time. The government initially linked the currency to the gold standard and then later pegged it to the U.S. dollar at par. Following a political revolution in Guatemala in 1944, the country moved from a dictatorship to more democratic government institutions. The government established the new Bank of Guatemala in 1945, and that entity took over the issuance of currency from the Central Bank of Guatemala in 1946. The newly created bank issued a new series of banknotes and took over the minting of coins.

Since 1987, the central bank has allowed the quetzal’s exchange rate to float freely against foreign currencies. Nevertheless, after an initial climb following the removal of its peg, the quetzal’s value has remained relatively stable in a range of approximately 7 to 8 quetzal per U.S. dollar since 2000.

Overview of Guatemala’s Economy

Guatemala and Belize form the northern edge of the Central American isthmus. Mexico borders Guatemala to the west and north, with Belize to the east. Honduras and El Salvador border Guatemala to the southeast, with Honduras along the Caribbean Sea coast and El Salvador to the south, along the Pacific.

Despite boasting one of the largest economies in Central America, Guatemala suffers from high rates of wealth inequality, with more than half the country living below the national poverty line according to U.S. Central Intelligence Agency statistics. Since 2018, the U.S. State Department has issued a travel advisory urging that potential tourists reconsider their travel plans due to high levels of violent crime and gang activity present in the country.

The country’s service sector drives the majority of its economy. The agricultural sector also plays a major role in employment as well as accounting for a substantial percentage of the country’s exports. Cash crops include coffee, sugar, bananas, and other fresh produce. A substantial amount of the money flowing into the country comes from foreign sources, particularly expatriates living in the United States.

The country experienced GDP growth of 3.6% and an inflation rate of 3.7% in 2019, the latest year for which data is available.

Related terms:

BZD (Belize Dollar)

The currency abbreviation for the Belize dollar is BZD. It is the official currency of this Central American country. read more

Chilean Peso (CLP)

The CLP (Chilean peso), symbolized by $, is the recognized currency of Chile and is issued by the Banco Central de Chile, the country's central bank. read more

Floating Exchange Rate and History

A floating exchange rate is a regime where a nation's currency is set by the forex market through supply and demand. The currency rises or falls freely, and is not significantly manipulated by the nation's government. read more

Foreign Exchange (Forex)

The foreign exchange (Forex) is the conversion of one currency into another currency. read more

Gold Standard

The gold standard is a system in which a country's government allows its currency to be freely converted into fixed amounts of gold. read more

HNL (Honduran Lempira)

HNL is the foreign exchange currency abbreviation for the Honduran Lempira, the currency for the Republic of Honduras. read more

Pegging

Pegging is controlling a country's currency rate by tying it to another country's currency or steering an asset's price prior to option expiration. read more

Philippine Peso (PHP)

The Philippine peso, abbreviated as PHP in foreign exchange (forex) markets, is the national currency of the Philippines. read more

Service Sector

The service sector is the portion of the economy that produces intangible goods.  read more

SVC (El Salvador Colon)

SVC is the currency abbreviation for the El Salvador colón, the currency for El Salvador from 1892 to 2001. read more