The Central Bank of Nicaragua released its December 2025 Monetary Indicators note, reporting continued increases in gross international reserves, net foreign-exchange purchases from the financial system, and year-on-year growth across all monetary aggregates. Currency in circulation grew 15.9% year-on-year, the monetary base 9.4%, public deposits 14.6%, and the broadest monetary aggregate (M3A) 14.9%. On a month-on-month basis, the monetary base expanded mainly due to the central bank’s foreign-exchange operations. Demand for the central bank’s monetary instruments remained strong, with the net position of instruments in local currency absorbing NIO 2,733.9 million of liquidity and instruments in foreign currency absorbing USD 18.6 million, both mainly linked to an increase in reserve requirements. Gross international reserves reached USD 8,324.8 million, equivalent to 3.6 times coverage of the monetary base, increasing by USD 318.1 million during December on the back of net FX purchases, net non-financial public sector accounts, higher reserve requirements and interest income on reserve investments; the Treasury also transferred resources to its accounts at the central bank and the exchange-rate gap stayed below the commission charged on FX sales.

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