2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Nicaragua


2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Nicaragua

Fund Relations

(As of December 31, 2019) Membership Status: Joined: March 14, 1946; Article VIII

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Latest Financial Arrangements:

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Projected Payments to Fund:

(SDR Million; based on existing use of resources and present holdings of SDRs):

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Implementation of HIPC Initiative:

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Implementation of Catastrophe Containment and Relief (CCR): Not Applicable

Exchange Rate Arrangements:

Nicaragua’s de jure and de facto exchange rate regime is classified as a crawling peg. The central bank buys/sells any amount of foreign currency from/to financial institutions at the official exchange rate. In November 2019, the monthly crawl has been reduced to an annual rate of 3 percent, from 5 percent since December 2004. As of December 31, 2019, the official exchange rate was C$33.8381 per U.S. dollar. Nicaragua has accepted the obligations of Article VIII, Sections 2, 3, and 4, and maintains an exchange system free of restrictions on the making of payments and transfers for current international transactions, except for an exchange restriction arising out of Nicaragua’s participation in the SUCRE regional payments arrangement (Unitary System of Regional Compensation of Payments).

Article IV Consultation:

The previous consultation was completed by the Executive Board on June 22, 2017 (Country Report No. 17/173).

Safeguards Assessment:

An updated safeguard assessment of the Central Bank of Nicaragua (CBN) was completed in January 2009. The assessment noted continued progress at the BCN in the areas of International Financial Reporting Standards (IFRS) implementation and reserve management operations. Timely publication of the audited financial statements is in place in accordance with the safeguards policy. The 2018 financial statements were audited and published on the CBN’s website, however, the external audit opinion continues to be qualified due to the uncertainty surrounding the valuation of government debt. Further, implementation of IFRS remains in progress.

Financial Sector Assessment Program (FSAP) Participation:

An FSAP update was completed in October 2009, and the Financial System Stability Assessment report for Nicaragua was issued on April 28, 2010.

Technical Assistance:

Nicaragua has received substantial technical assistance. The schedule below details assistance provided since June 2017.

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Relations with Other International Financial Institutions

World Bank: http://www.worldbank.org/en/country/nicaragua

Interamerican Development Bank: https://www.iadb.org/en/countries/nicaragua/overview

Central American Bank for Economic Integration: https://www.bcie.org/en/member-countries/founders/nicaragua/

Main Websites of Data

Central Bank of Nicaragua (https://www.bcn.gob.ni/)

National accounts

Consumer price index

Monthly indicator of economic activity (IMAE)

Balance of payments

International reserves

Interest rates

Monetary and financial indicators

Exchange rates

Ministry of Finance (http://www.hacienda.gob.ni/)

Fiscal accounts

Central government budget

National Institute of Development Information (https://www.inide.gob.ni/)

Labor and employment

Household income and expenditure survey

Poverty and inequality

Superintendency of Banks (http://www.siboif.gob.ni/)

Balance sheets and income statements

Financial soundness indicators

Statistical Issues

(As of December 31, 2019)

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Table 1.

Nicaragua: Table of Common Indicators Required for Surveillance

(As of December 31, 2019)

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Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign banks, domestic banks, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Including currency and maturity composition.

Includes external gross financial asset and liability positions vis-à-vis nonresidents.

Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I); Not Available (NA).

Reflects the assessment provided in the data ROSC published on December 8, 2005 and based on the findings of the mission that took place during January 11–26, 2005 for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), or not observed (NO).

Same as footnote 8, except referring to international standards concerning source data, assessment and validation of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.


Formerly PRGF.


Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.


Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.


The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.