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May 15, 8:45 am)— A few days after floating the idea of de-dollarizing Nicaragua’s economy, the Central Bank has withdrawn its plan and publicly recognized the country’s preferential option for U.S. dollars.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