Economy, Currency and Banking
commodities market, downward trend, stock market, Salvador, Central America
The currency of El Salvador is the colon (8.76 colones equal U.S.$1; 2000 average). This currency is issued only by the Central Reserve Bank of El Salvador. In 1994 the government privatized El Salvador’s banks and provided legislation to develop its stock market and establish a commodities market.
In the early 1990s, El Salvador had one of the higher inflation rates in Central America; it reached nearly 20 percent in 1992. But the rate dropped to 12 percent in 1993 and 10 percent in 1994. The Central Reserve Bank has been effective in regulating the currency and interest rates, and the downward trend continued through 1996.
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