Título I. Moneda nacional

The monetary unit of Guatemala is called the Quetzal. The monetary symbol of the Quetzal is represented by the letter "Q".

The Quetzal is divided into one hundred equal parts called centavos.

Only the Bank of Guatemala may issue banknotes and coins within the territory of the Republic, in accordance with this Law and with the Organic Law of the Bank of Guatemala. The issuance consists of the national banknotes and coins that are not in the possession of the Bank of Guatemala.

Any person other than the Bank of Guatemala who puts into circulation banknotes, coins, vouchers, promissory notes or other documents containing a promise of payment in cash, to the bearer and on demand, or tokens, cards, thin plates, flat metal pieces, or other objects, with the purpose that they serve as national currency, shall be sanctioned, as the case may be, with the penalties prescribed in the Penal Code.

National banknotes and coins that the banks of the system identify as forged or counterfeit, after issuing a written acknowledgment to the holder, shall be seized and transferred, without any compensation, to the Bank of Guatemala, for the corresponding purposes.

In any case, the Bank concerned shall issue to the person concerned a certificate of seizure.

The printing of banknotes and the minting of metal coins of the national monetary unit shall be carried out exclusively in the quantities and under the conditions approved by the Monetary Board.

The printing of banknotes or the minting of coins of the national monetary unit, carried out in a form or in quantities not ordered by the Monetary Board, shall render those who ordered or carried it out liable to the responsibilities and penalties prescribed in the Penal Code.

Unless the parties conventionally and expressly provide otherwise, the Quetzal shall be used as the unit of account and means of payment in every act or transaction of a monetary nature, and shall have the power to discharge debts. In any case, the jurisdictional and administrative bodies shall respect and faithfully enforce what has been agreed by the parties.

Any person, whether natural or legal, may freely and by mutual agreement stipulate payment in foreign currency of the fees, salaries, wages, or commissions to which that person is entitled for the performance of work or the provision of services, as the case may be.

The Bank of Guatemala shall exchange, on demand and without charges of any nature, national banknotes and coins of any series or denomination for national banknotes and coins of any other series or denomination.

The Bank of Guatemala may call in for exchange the banknotes or coins of the issues that it deems appropriate.

The Bank of Guatemala shall amortize and exchange for new national banknotes or coins the national pieces that have deteriorated through use and that are unfit for circulation.

The Bank of Guatemala shall have no obligation to exchange banknotes that cannot be identified, or those that have lost more than two-fifths of their surface area, nor shall it be obliged to exchange coins that are not identifiable, or those that show signs of filing, clipping or perforation. Such banknotes and coins shall be seized and withdrawn from circulation.