The Central Bank of Nicaragua published its monetary indicators note for December 2024, reporting further increases in gross international reserves and growth across all monetary aggregates. Year on year, currency in circulation rose 20%, the monetary base 21%, public deposits 10%, and broad money (M3) 11.7%, alongside net foreign-currency sales at the central bank’s exchange desk and a continued low exchange-rate gap. Month on month, the monetary base expanded mainly due to net payment of Monetary Deposits, central government operations and net redemption of central bank securities. Demand remained firm for central bank Letters used to manage structural liquidity in domestic currency, while demand for monetary repos stayed low; the net position of domestic-currency instruments resulted in a liquidity expansion of NIO 92.1m, largely from net payment of Monetary Deposits. Foreign-currency instruments absorbed USD 9.7m of liquidity, mainly reflecting an increase in reserve requirements. Gross international reserves reached USD 6,105.1m, equivalent to 2.9 times monetary base, after rising by USD 48.5m during December, driven mainly by the Non-Financial Public Sector’s net accounts, foreign-currency reserve requirements, external interest to the central bank and external inflows to the Non-Financial Public Sector.

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