Honduran Currency Lempira Gradually Depreciates Against U.S. Dollar

2011-09-13

Since Honduran currency, the Lempira, was relaxed to a floating exchange rate against the U.S. dollar on July 25 this year, the currency first showed a trend of appreciation in early August, then the appreciation turned into slight depreciation in mid-August, and by September, the depreciation had broken the record of the previous fixed-exchange-rate period of 1 U.S. dollar to 18.8951 Lempiras. The current rate is 1 U.S. dollar to 18.9118 Lempiras. Market expectations are that the Lempiras will depreciate to 1 U.S. dollar to 19.17 Lempiras by the end of this year. On the other hand, data shows that foreign exchange reserves owned by the Honduran Central Bank were 3.025 billion U.S. dollars in July 25, 2011 (before the implementation of the floating exchange rate), and by September 9, the number had decreased to 2.076 billion U.S. dollars.