About Bank of Guatemala
The legal and institutional origins of the current central banking system in Guatemala date back to the monetary and financial reform period of 1924-1926. Then, the Central Bank of Guatemala was created as a private issuance, transfer and discount establishment with the participation of the State as a shareholder. This reform culminated during the mandate of General José María Orellana (1921-1926), and was led in its final stage by a team under the leadership of Mr. Carlos O. Zachrisson (then Minister of Finance), who worked on the basis of the technical studies prepared by Professor Edwin Walter Kemmerer of Princeton University. 1
The origin of this reform is linked to the serious monetary and financial imbalances caused by the previous monetary regime, based on the legal existence of an oligopoly of issuing banks regulated by the government of Manuel Estrada Cabrera, which generated a gigantic government debt for those banks. In 1919, the Estrada Cabrera government itself invited Professor Kemmerer to study the monetary conditions of the country and make the recommendations that the case warranted to undertake the reform. Kemmerer recommended, among other measures, the establishment of a central bank that would be the fiscal agent of the government and that would have the exclusive right to issue banknotes… Continue reading about Bank of Guatemala here.