On January 23, 2023, the Central Bank of Nicaragua ("BCN") announced that its Board of Directors approved the reduction of the current fixed rate of the exchange of Cordobas with respect to the US dollar from 2% to 1% per annum.
This rate will begin to be applied and published in the monthly table of the official exchange rate as of February 1, 2023. If you wish to know the official exchange rate for the month of February, click here.
This decision, according to information published by the BCN, is based on an adequate macroeconomic policy framework, and growth indicators, with the following results: (i) stable public finances; (ii) financed balance of payments; (iii) stability of the main variables of the financial system; (iv) improvement in the levels and coverage of international reserves; and (v) monetary and exchange rate stability.
According to the BCN, this reduction in the currency exchange rate will help to compensate the effects of international inflation on the Nicaraguan economy and reinforce the predictability of the nominal exchange rate, thus reinforcing the stability of the national currency.