In 1990, peace was re-established after a decade of civil war since the overthrow of the ruling Somoza family in a coup in July 1979. During the 1990’s, the country had a huge current account deficit position as high as 30 percent of GDP coupled with a difficult external debt level. As one of the poorest countries in the Western hemisphere, Hurricane Mitch brought large infrastructure damage in 1998. Economic renewal with free market reforms is underway for this Central American nation of 5.7 million people.
Economic Statistics
GDP as measured by purchasing power parity stands at $16 billion USD (2005) with corresponding GDP/Capita at $2,800 USD. GDP growth figures include year 2004 at 5 percent, 2005 at 3.5 percent. Inflation numbers have year 1996 at 11.6 percent, year 2005 at 10 percent. The current account deficit is close to $1 billion USD for 2005. Nicaragua is a net oil importer at 27,000 bpd (2003).
CURRENCY: ISO Symbol ‘NIO’, Nicaraguan Cordoba, gold Cordoba. At time of review on January 12, 2006, the gold Cordoba had an exchange valuation of 17.08 NIO to the US-dollar (USD). The currency regime follows that of indicators, the gold Cordoba is adjusted to a set of indicators. As measured by purchasing power parity, some estimates had the gold Cordoba approximately 25 percent undervalued to the US-dollar in 2004.
CURRENCY HISTORY: the gold Cordoba replaced the former Cordoba currency in 1991. Historical exchange valuations for the gold Cordoba include: year 2005 at 16.75 NIO to the USD, 2004 at 15.93, 2003 at 15.10, 2002 at 14.25, 2001 at 13.37, December 1999 at 12.29, October 1997 at 9.76, year 1996 at 8.44, 1995 at 7.55, 1994 at 6.72 and year 1993 at 5.62.
CURRENCY FORECAST: for a further detailed currency analysis opinion as presented by BankINTRO.com, please enquire directly by clicking the banner add below and we will be happy to provide you a quote for currency research services provided.
UPDATED: January 12, 2006
