It would presume that central bankers know better than anyone else what represents fair value for assets. We don’t. Instead, the real issue is, What is the role of asset prices in the setting of monetary policy? Central banks—and here I’m speaking about the Bank of Canada in particular—do take into account the information contained in asset prices in a number of ways.
International Monetary Reserves have reached highest historical levels, at over USD 6 bn (and expected to reach close to USD 7 bn in 2012), which represents an important liquidity cushion for the Guatemalan economy as well as a good signal to the international markets and credit rating agencies.