Economy, Currency and Banking

The cordoba, consisting of 100 centavos, is Nicaragua’s basic monetary unit (12.68 cordobas equal U.S.$1, 2000 average). The U.S. dollar is widely used and accepted.

Private banking was suspended under the Sandinistas but was restored in 1990. The state still controls a large part of the banking sector, but private banking is growing rapidly. Currency is issued by the government’s Central Bank, which began operations in 1961. In addition to issuing currency, the bank handles government funds and conducts economic research.