Update: Money shortage in Guatemala

Another bank ceased its operations last week amidst rumors of fraud and money laundering; Banco del Comercio is the second bank to go “bankrupt” in only six months. Last October Banco del Café was shut down by Guatemala’s central bank due to some irregularities with its offshore accounts.

Since December, Guatemalans and tourists have had to endure long lines at the ATM’s due to the money shortage, which the central bank blamed on increased withdrawals due to a combination of the holiday season and mistrust in the banking system.

The closing of another bank could make things even harder but the Banco de Guatemala announced that over 720 million new Quetzales (Guatemala’s local currency) would start circulating the country today, which will hopefully ease the situation. It is still recommended that you try and use your credit card wherever possible until the situation is regulated.

This post was submitted by Yvonne Faass, our editor in Guatemala 

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