Nicaragua’s Central Bank Announces Fixed Exchange Rate for Córdoba Against Dollar

Nicaragua’s Central Bank has announced that as of January 1, the country’s currency, the córdoba, will no longer be devalued against the dollar. Instead, it will remain fixed at an exchange rate of 36.6243 córdobas per dollar. According to Ovidio Reyes, the President of the Central Bank, the decision to fix the exchange rate is aimed at achieving “exchange stability.” The bank attributed this decision to several economic variables, including a steady flow of remittances, growth in exports and tourism, foreign direct investment, tax collection, expansion of economic activities, and the stability of the National Financial System (SFN). The Central Bank also highlighted the record level of international reserves, with reserves currently exceeding 5.1 billion dollars. As a result, the fixed exchange rate will apply during 2024. This measure has raised questions about its sustainability, and its implications for various sectors, including exporters and pensioners. Experts and analysts have weighed in on the potential impact of this decision, with concerns raised about the consequences for different segments of the economy. For more information on the implications of the fixed exchange rate for the córdoba, stay tuned to coverage related to this measure.