Central Bank to un-dedollarize economy

Olvido Reyes and IMF's Przemek Gajdeczka

Olvido Reyes and IMF's Przemek Gajdeczka

(posted May 15, 8:45 am)— A few days after floating the idea of de-dollarizing Nicaragua’s economy, the Central Bank has withdrawn its plan and publicly recognized the country’s preferential option for U.S. dollars.

“There is a strong preference for dollars in Nicaragua, and we can’t go against the current,” Central Bank president Ovidio Reyes said during a press conference on Wednesday, under the careful watch of IMF mission chief Przemek Gajdeczka.

Reyes said Nicaraguans’ love for dollars is a “private decision” and the government will continue to guarantee the free circulation of greenbacks in the economy.

Earlier this week, Reyes said the Central Bank had “taken up the issue of de-dollarization, or strengthening of the córdoba.”

Now he says forget he ever mentioned it.

“We’re not going to continue talking about de-dollarization,” he said on Wednesday.

Nicaragua’s economy is 80% dollarized, the highest unofficial dollarization in the region.

 

  • simplyfantabulous

    Talk about confidence-inspiring. The Managua street exchange will be a ski slope for a while. Cheap travel for foreigners next winter.

  • Pepe Turcon

    It’s coming anyway….Ortega has been using the Reserves, they are running out of time. So keep doing what you are probably doing and keep every cent in US$ and don’t spend them, stop buying anything in Nicaragua. Wait for the crash and you’ll get it for almost nothing.
    Another thing and much more important it’s about keeping the US $ healthy, support the Tea Party.

    • estado

      Another thing and much more important it’s about keeping the US $ healthy, support the Tea Party.

      This is called the Nicaragua Dispatch.

      Get your neo-lib, self-realizing prophesies, the fuck out of here.

    • http://www.mondadori.com/Group/History AlessandraMondadori

      That’s what everybody is talking about except for the small Ortega/Castro Chavista crowd in their brand new toys in their make believe there is “prosperity” in Nica. Another thing is when you ask some 90% of the people: they have barely to survive.What a joke this Ortega “government” is.
      The only hope- back to realpolitik- is the coming landslide in November for the US Senate and in 2016 the Patriots in the Oval office..Good to know our friend Ben Sasse won by a wide margin in Nebraska recently and a 100% Tea Party family. Obama and his media can happily move to Cuba …but the way things are moving in Venezuela all of the Chavismo bad taste joke will surely be over. Hawaii maybe…?

      • estado

        You’re lying.

        Like really, do you make a habit of snorting Columbian cocaine before you post? I think you have a drug problem.

    • Edlcs2

      Let’s see..support a group that is divisive, antagonist, rife with conspiratorial assumptions and racism? I’ll pass.

      • estado

        Then you should probably not vote for Republicans or Democrats in the upcoming election.

        I’d rather support a group that has proven its worth to the people of my Homeland over your sophistic basis for supporting some other party in Nicaragua. (And which of them hold worth? Obviously the mud-people from the ‘autonomous’ regions are sub-human and clearly don’t deserve the right to vote, but they get it anyway! The only issue I have with the Sandinistas is how humanely they treat the eastern dogs.