GUATEMALA · ECONOMY
Key Facts
- —The country Guatemala received US$20.0 billion in remittances from January to September.
- —What happened The Monetary Board named five senior central bank managers on 7 October.
- —Who left General, financial and economic managers resigned after 35 to 42 years.
- —The new chief Jonathan Menkos, a former finance minister, took office on 1 October.
- —What it means for you No rate change; the quetzal holds at 7.64 per US dollar.
- —Still open The Constitutional Court has not ruled on three challenges to Menkos.
A week into Jonathan Menkos’s term, Guatemala’s central bank has a new management team, while a court still weighs his own appointment.
The Guatemala central bank has replaced its senior management, a week after a former finance minister took charge. The change matters to US investors and to families sending dollars home, because the bank sets interest rates and steers the quetzal.
The Monetary Board, which runs the Bank of Guatemala (Banguat), accepted four resignations and filled five top posts on Wednesday, 7 October. Prensa Libre, a leading Guatemalan daily, called it the first complete turnover of the bank’s management team.
The bank’s choices matter for a country with large dollar inflows. Remittances, mainly from Guatemalans in the United States, reached US$20.0 billion from January to September, Banguat data show.
Who Leaves and Who Takes Over
The board accepted these resignations, according to its statement dated 7 October:
- Jorge Vinicio Cáceres Dávila, general manager, after 42 years at the bank.
- William Ariel Cano Hernández, financial manager, after 35 years.
- Johny Gramajo Marroquín, economic manager, after 38 years.
- Herberth Solórzano Somoza, administrative manager, who stays on in a new post.
The new line-up, as named by the board:
- General manager: Eddy Roberto Carpio Sam, a Banguat economist for over 26 years and an Inter-American Development Bank counsellor from 2023 to 2026.
- Financial manager: Susana Manoella Guerra Jordán, deputy director of the international department since 2023.
- Economic manager: Herberth Solórzano Somoza, who ran administration from 2022.
- Administrative manager: Juan Antonio Ibáñez Reyes, until now deputy director of macroeconomic analysis and forecasting.
- Legal manager: Edwin Rolando Paiz Sandoval, a public-sector lawyer whose past work includes the finance ministry.
All four career staff hold graduate degrees from US universities: Texas A&M, Vanderbilt, Claremont and the University of Illinois. Paiz Sandoval took a US government course on fighting corruption and money laundering, the statement says.
The board said the moves aim to strengthen technical excellence, administration and the civil service.
The bank told journalists some departing managers retired after over 35 years, Prensa Libre reported. The statement itself gives no reasons.
Who Jonathan Menkos Is
Menkos, an economist, took office on Thursday, 1 October, for a term running to 30 September 2030. He replaced Álvaro González Ricci, who still led the bank’s 23 September press conference as president.
His official Banguat CV says he was minister of public finance from 2024 to 2026, with a seat on the Monetary Board. He worked at the bank from 2000 to 2006, then spent 16 years at a regional fiscal think tank.
President Bernardo Arévalo, in office since January 2024, appointed him. Three legal challenges object mainly that he kept his seat in Congress on leave.
The dispute is explained in Guatemala Central Bank Chief Faces Court Deadline.
Menkos Sets Out His Priorities
On Tuesday, 6 October, Menkos told a congressional committee that stability is the base for faster growth, La Hora reported. He forecast growth of 4.3% in 2026 and at least 4% in 2027.
He called the 2027 budget’s planned deficit of 4.4% of GDP manageable, because much of it funds investment. Guatemala should then return gradually to a deficit near 2%, he said.
He expects oil near US$83 a barrel at the end of 2026, easing to US$71 during 2027. That outlook assumes calmer conflict in the Middle East and lower freight costs.
Business leaders remain wary. Carlos Arias Bouscayrol, head of the CACIF business federation, said decisions taken during the dispute could later be challenged.
Inflation and the Quetzal
The new team inherits rising prices. Annual inflation reached 4.69% in September, from 3.37% in August, as reported in Guatemala Inflation Hits 4.69% in September.
That is inside the bank’s target of 4%, plus or minus one point, but above its midpoint. The board held its policy rate at 3.50% on 23 September, citing upside risks from fuel prices and El Niño.
The quetzal stood at 7.642 per US dollar on Banguat’s reference rate for Thursday, 8 October. It has barely moved this month, from 7.640 on 1 October.
What It Means for You
For people sending money from the United States, nothing changes for now: no policy shift was announced. Remittance growth has slowed to 5.5% this year, from 19.8% a year earlier.
A 1% US tax on remittances paid in cash has applied since 1 January. September inflows were US$2.24 billion, up 6.4% on September 2025.
For investors, the question is central bank independence while the court case runs. Four of the five appointees are long-serving Banguat staff rather than outsiders.
What Is Not Known
The board did not give reasons for each resignation or say when they were submitted. It also did not say who held the legal post before Paiz Sandoval.
It is unclear when the Constitutional Court will rule, or what a ruling would mean for decisions already taken. La Hora reported the court could take up the challenges on Thursday, 8 October.
What Comes Next
The court must first decide whether to suspend the appointment provisionally while it studies the case. The board’s next scheduled rate decision is on Wednesday, 25 November.
The reshuffle does not change the 3.50% policy rate or the bank’s 4% inflation target. Congress, meanwhile, is debating the 2027 budget that Menkos defended.
Frequently Asked Questions
Who is the new general manager of the Bank of Guatemala?
Eddy Roberto Carpio Sam, an economist with more than 26 years at the bank. He was a counsellor at the Inter-American Development Bank from July 2023 to June 2026.
Why did the Guatemala central bank change its managers?
The Monetary Board said it wants to strengthen technical excellence, administration and the civil service. It gave no individual reasons, though the bank told reporters some managers retired.
Is Jonathan Menkos a former finance minister?
Yes. His official central bank CV says he was minister of public finance from 2024 to 2026.
Does the change affect remittances or the quetzal?
No direct change was announced. The quetzal stood at 7.642 per US dollar on the central bank’s reference rate for 8 October.
Sources: Banco de Guatemala, Monetary Board statement of 7 October 2026; Banco de Guatemala, CV of Jonathan Menkos; Banco de Guatemala, remittance statistics; Banco de Guatemala, consumer price index; Banco de Guatemala, rate decision of 23 September 2026; La Hora; La Hora; Prensa Libre; Prensa Libre (all accessed 8 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief