Nicaragua: Legal Reserve Falls to 13%

The Central Bank announced that from August 12 it will reduce from 15% to 13% the legal reserve week rate in national currency.

Friday, August 9, 2019

From the Central Bank of Nicaragua statement:

Managua, August 07, 2019. The Central Bank of Nicaragua (BCN) reports that liquidity conditions are observed that favor the support of banking and monetary operations, which represents a change with respect to previous behavior.

In these new conditions, from Friday, August 2, 2019, the NCB induced a reduction of the interest rate of monetary repurchase agreements for 7-day operations from 8% to 6.3%. Also, the NCB established a special program of monetary repurchase agreements for 4,986 million cordobas, extending the 1 and 7 day terms to terms of between 30 and 180 days.

In order to favor the fluidity of liquidity in national currency and the lowering of costs, the NCB decided to reduce the weekly legal reserve rate in national currency from 15% to 13%, maintaining the legal reserve rate in foreign currency at 15%, measure that will come into effect as of Monday, August 12, 2019.

With these actions, the Central Bank expects to continue fulfilling its fundamental objective of stability of the national currency and the normal development of internal and external payments.

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