Honduras: Less Demand for Dollars

Dollar purchases by financial institutions in the first eight months of the year were down 6% compared to those in the same period of 2013.

Thursday, September 11, 2014

From 2 January to 30 August 2014 $5,887.1 million was awarded to institutions participating in the auction of currency by the Central Bank of Honduras, while in the same period in 2013 the figure was $6,268.2 million.

Among the reasons behind the lower demand is the fall in international prices of some commodities such as oil. Laprensa.hn reports that "... There is also another factor which explains this performance: the decline in import volumes of goods. Added to this is the rising dollar in the electronic auctions of currency by the central bank, ie, greater devaluation of the Lempira versus the dollar. "

Industry experts "... expect that at the end of 2014, the allocation of foreign exchange in the electronic auction will be lower than reported last year."

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