Nicaragua's international reserves reach historic $9.9 billion high

The Central Bank of Nicaragua (BCN) reported that its gross international reserves reached a historic high of approximately $9,986 million in August 2026. This growth was primarily driven by massive inflows of family remittances and net foreign currency purchases made by the BCN from the private banking sector.

To maintain exchange rate stability and prevent inflation caused by an excess of local currency, the BCN implemented measures to reduce market liquidity. The bank reported a contraction of 1,552.7 million córdobas in liquidity, largely through open market operations and the sale of BCN Letras (debt securities).

While the record reserves strengthen the country's financial cushion and monetary stability, the reduction in circulating córdobas may impact the banking sector by potentially increasing the cost of loans for families and small businesses.