Central Bank of Nicaragua publishes August monetary indicators as gross international reserves rise to USD 7,578.2 million

The Central Bank of Nicaragua published its August 2025 Monetary Indicators note, reporting continued increases in gross international reserves, net foreign exchange purchases at its exchange desk, and ongoing liquidity management through central bank instruments alongside broad-based growth in monetary aggregates. The update also notes that the exchange rate gap remained below the foreign currency selling commission and that the General Treasury of the Republic moved resources to its accounts at the central bank. Year on year, currency in circulation grew 16.3%, the monetary base 16.6%, public deposits 10.7%, and the broad money aggregate M3 11.5%. Month on month, the monetary base expanded mainly due to net payments of Monetary Deposits and central government operations, partly offset by net placements of central bank securities. Net positions in domestic-currency instruments absorbed NIO 1,959.9 million of liquidity, and foreign-currency instruments absorbed USD 15.7 million, both mainly via net placements through open market operations. Gross international reserves rose by USD 147.2 million during August to USD 7,578.2 million, equivalent to 3.9 times coverage of the monetary base, driven mainly by net non-financial public sector accounts, net placement of foreign-currency bills, external inflows to the non-financial public sector, and central bank exchange desk activity.