The Central Bank of Nicaragua published its January 2025 monetary indicators note, reporting continued increases in gross international reserves, net foreign-exchange purchases at its exchange desk, sustained demand for central bank instruments, and year-on-year growth across all monetary aggregates. Currency in circulation grew 23.5% year-on-year, the monetary base 20.2%, public deposits 9.5%, and broad money (M3) 11.7%. On a month-on-month basis, the monetary base contracted, mainly due to central government operations, including transfers by the Republic’s General Treasury to its accounts at the central bank. In monetary operations, the net position of the Central Bank of Nicaragua’s local-currency instruments resulted in a liquidity expansion of NIO 5,895.3 million, mainly reflecting a reduction in the legal reserve requirement, while the net position of foreign-currency instruments absorbed USD 33.6 million in liquidity, mainly through monetary deposits. Gross international reserves stood at USD 6,147.7 million, equivalent to 3.1 times coverage of the monetary base, after rising by USD 42.7 million during the month, driven mainly by external inflows to the non-financial public sector, absorption of foreign-currency monetary deposits, interest earned on reserve investments, and the sector’s net accounts.