The bankruptcy of US banks does not affect Honduras at the moment

The National Banking and Insurance Committee excludes the effects on the financial system. If the crisis spreads to the United States, the economy will be affected.

San Pedro Sula

bankruptcy Silicon Valley Bank And Signature Bank of the United States slightly affect the stock markets and financial systems of the emerging economies of Latin America; However, Honduras, for the time being, does not register the negative effects of this new crisis.

In short, chief The National Banking and Insurance Authority (CNBS), Markio SierraTell LA PRENSA newspaper that “at present, those banks’ missiles have no effect on the Honduran financial system” consisting of fifteen commercial banks and nine financial companies.

The previous Friday, the US regulators closed the Silicon Valley Bank (Santa Clara, California) due to lack of liquidity and bankruptcy, and in less than 72 hours, on Sunday, New York Signature Bank went bankrupt.

And as a prelude to the collapse of these two entities, Silvergate Bank (founded in 1988 in California) declared bankruptcy last Thursday, and specialized in Digital currencies.

The bankruptcy of these banks on Monday caused a slight decline in the stocks of financial institutions listed on stock exchanges such as Colombia and Argentina listed companies United State.

Rafael Delgadopresident Honduras College of Economists (CHE), considers that at the present time “it is too early to determine the effects of the bankruptcy of these two banks, because everything will depend on the actions taken by the regulatory entities in United States and the Federal Reserve (feed it)”.

See also  This is how Elon Musk arrived driving a Tesla Cybertruck truck to the factory where the car will be mass-produced

However, “the tension of the actors and the insecurity of the actors can generate panic and affect other institutions. Fragile banks fail and affect strong banks as well.”

Delgado said that if systemic risks expand in the United States, “there could be an increase in interest rates in the financial system of this country and that would have repercussions in Europe, Latin America and Honduras.”

Likewise, a financial crisis would cause problems in that country’s economy, as in consumption, which is the main trading partner of Honduras.

In an isolated but straightforward manner, over the past week some Hondurans have noticed a token drop in their cryptocurrency investments that drove them into US Dollar Coins (USDC).

USDC, the second stablecoin (1-1 against the dollar), has fallen in recent days after its issuing company (Circle) said it had part of its reserves in Silicon Valley Bank.

The value of this currency fell on Saturday to $0.9001 and yesterday, after the announcements of the US President, Joe Bidenrecovered and exceeded $0.99.

Leonardo BaguadaFounder Blockchain Hondurasexplain to LA PRENSA newspaper The devaluation of “this stablecoin is cause for concern, but not a problem for those who own it.”

“I have USDC and I didn’t lose. The value went down, but it recovered. As long as I don’t sell these coins, I won’t lose. The worst enemy in the crypto world is misinformation, and misinformation can lead to many people making mistakes and losing.”

More than 1 million Hondurans live in the United States who sent $8,683 million in the previous year (more than in 2021: 17.8%).

Myrtle Frost

"Reader. Evil problem solver. Typical analyst. Unapologetic internet ninja."

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top