GUATEMALA · ECONOMY
Key Facts
- —The country Guatemala is Central America’s largest economy and one of the biggest sources of migrants living in the United States.
- —What happened Congress president Luis Contreras said on Monday, 12 October, that Jonathan Menkos will retake his seat as a lawmaker.
- —Why it matters Menkos was the president’s pick to run the Guatemala central bank, which manages the quetzal and tracks remittances from the US.
- —The court The Constitutional Court provisionally suspended his appointment on 8 October because he had never given up his seat in Congress.
- —Who runs the bank Bank vice president José Alfredo Blanco Valdés has been acting president since 8 October and says operations are normal.
- —Still open President Bernardo Arévalo has not said whether he will name Menkos again or choose someone else.
Jonathan Menkos, the former finance minister picked to lead the Guatemala central bank, is returning to Congress after the top court blocked him. Congress president Luis Contreras confirmed the return on Monday, 12 October, according to Prensa Libre, La Hora and Soy502.
The step leaves the Banco de Guatemala under an acting chief, after the US Embassy warned on 8 October against politicising the bank. It matters in the United States, where most Guatemalan migrants live and earn the money they send home.
What Congress Said on Monday
Contreras, who presides over Guatemala’s 160-seat, single-chamber Congress, told reporters that Menkos would return “from today, I think, or tomorrow”. Soy502, a Guatemala City news site, quoted him saying he was not sure of the day but that the return was certain.
La Hora, a Guatemala City daily, reported that Menkos is expected at the next plenary session on Tuesday, 13 October. Menkos was elected to Congress for the 2024–2028 term but took leave in January 2024 to become finance minister.
La Hora added that Olga Villalta, the substitute who has held his seat since then, will step down when he returns. Menkos had not commented publicly on the court ruling by Monday evening, the paper said.
Why the Court Blocked the Appointment
The Constitutional Court is Guatemala’s highest authority on constitutional disputes. On 8 October it granted provisional relief, known as an amparo, to two challengers.
The order suspended Menkos as head of the Guatemala central bank and its Monetary Board. One challenger is Cacif, the country’s main private-sector federation.
The other is Allan Rodríguez, a congressman for Vamos, a conservative opposition party.
Their core argument was that Menkos kept his seat in Congress while running the bank. La Hora reported that the court found, by majority, that the bank’s organic law bars an elected official who has not fully resigned.
The ruling is provisional, not a final judgment. Arévalo had argued that the constitution allowed a lawmaker on leave to serve in another public post.
Who Runs the Guatemala Central Bank Now
José Alfredo Blanco Valdés, vice president of the Guatemala central bank, has served as acting president since 8 October. The Monetary Board he now chairs sets the bank’s policy, including interest rates.
“There is no crisis at the Monetary Board and the Banco de Guatemala,” Blanco told La Hora on Monday. He said both bodies were carrying out their legal duties “with absolute normality”.
The presidential press office, known as SCSP, also said the bank and the board were operating normally, La Hora reported. Blanco said the board will keep its regular calendar of meetings under his chairmanship.
What Arévalo and Prosecutors Say
Arévalo is a centre-left reformer who took office in January 2024 on an anti-corruption platform. His press office said he had been notified of the ruling and would soon announce the next steps.
The office said the bank’s leadership must meet technical criteria and follow the law, and that the government respects the court’s decisions. Arévalo has not said whether he would name Menkos again if he gave up his seat.
The Public Ministry, Guatemala’s public prosecutor’s office, has confirmed receiving three criminal complaints over his eight days at the bank. Prensa Libre and La Hora reported that Rodríguez filed one for alleged abuse of authority and a public accountant filed two more.
A complaint is not a criminal charge. Menkos had not responded publicly to the complaints by Monday, La Hora reported.
What It Means for You
For Guatemalans in the United States who send money home, nothing changes for now. The acting governor says the bank’s legal duties, which include managing the quetzal, continue as normal.
For investors, the episode tests how the government picks its central bank chief. Business groups challenged the appointment in court, and the judges sided with them for now.
Washington is watching too. The US Embassy said on 8 October it would never stay silent over attempts to politicise the bank, Prensa Libre and La Hora reported.
Earlier coverage of the court ruling that suspended Menkos on 8 October explains how the dispute began.
What Is Not Known
It is not known whether Arévalo will name Menkos again after he resigns his seat, or pick a new candidate. Officials have not said when the court will issue a final ruling.
Prosecutors have not said whether they will open a formal investigation into the three complaints. It is also unclear how long Blanco will lead the Guatemala central bank on an acting basis.
More: Guatemala news in English, every day from The Rio Times.
Frequently Asked Questions
What is the Banco de Guatemala?
It is the Guatemala central bank. It manages the quetzal, the national currency, and tracks remittances, the money migrants send home, mostly from the United States.
Why was Jonathan Menkos blocked as Guatemala central bank chief?
The Constitutional Court provisionally suspended him on 8 October because he had only taken leave from Congress instead of resigning his seat. The court found, provisionally, that the bank’s organic law bars sitting elected officials from the post.
Who leads the Guatemala central bank now?
Vice President José Alfredo Blanco Valdés has been acting president since 8 October. He says the bank and its Monetary Board are working normally.
Does this affect money sent from the US to Guatemala?
Not for now. The acting governor and the presidential press office both say the central bank is operating normally.
Sources: La Hora, 12 October 2026; La Hora, 12 October 2026; La Hora, 12 October 2026; Prensa Libre, 12 October 2026; Soy502, 12 October 2026; Prensa Libre (MP complaints), 9 October 2026; Prensa Libre (US Embassy statement), 8 October 2026; La Hora (US Embassy statement), 8 October 2026.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error
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