Monetary Policy

Honduras's net international reserves have accumulated $1.13 billion since January 27, the central bank reported as of June 25, while import coverage held steady at 6.6 months.

As of March 2026, Honduras's foreign-exchange reserves reached 144.4% of the IMF's recommended sufficiency level (100%–150%), exceeding the prudential threshold and bolstering the country's ability to withstand external economic shocks.

Interest rates on new loans and deposits in Honduras are falling, especially in lempiras, as bank deposits grow and credit conditions normalize across the financial system.

The Central Bank of Honduras says strengthening net international reserves are boosting liquidity in the economy, prompting active monetary management to control excess liquidity and preserve price stability.

Honduras's net foreign reserves reached $1.19 billion as of June 19, up sharply from late January, while import coverage remained stable at 6.6 months.

Honduras's net foreign reserves grew by $1.18 billion from late January to mid-June 2026, while import coverage remained stable at 6.6 months of goods and services.

Economist Guillermo Matamoros says the Central Bank of Honduras must implement mitigation measures as inflation indicators suggest it will exceed the bank's target range, though May data shows a slowdown from April.

Demand for the Central Bank's short-term reverse-repurchase operations (RVG) continues falling as banks face greater system liquidity and higher relative costs, while interbank market trading (MED) grows as an alternative funding source.

Honduras's central bank forecasts year-over-year inflation of 4.98% by December 2026, declining to the bank's target range of 3.0%–5.0% by May 2028.

Honduras's net international reserves increased by $1.067 billion from January 27 to June 11, 2026, with import coverage holding steady at 6.6 months of goods and services.

Private-sector credit in Honduras is expanding faster, driven by declining interest rates and increased lending to businesses, the Central Bank reports.

Finance Minister Emilio Hernández and Central Bank President Roberto Lagos signed a letter of intent to the IMF ahead of the June 29 board review, with officials saying approval could unlock about $240 million in fresh funds and help stabilize the economy.

Year-over-year inflation in Honduras reached 6.09% in May, driven partly by Middle East conflict impacts, temporarily exceeding the central bank's medium-term tolerance range of 4.00% plus or minus 1 percentage point.

The central bank reports that credit to Honduras's private sector continues expanding, fueled by rising demand for business financing tied to stronger investment and economic activity.

Economists say Honduras should revise its monetary program to counter inflation driven by fuel-price increases, and restructure the state power utility ENEE to reduce losses, cut political interference, and stabilize the electricity system.

Honduras has accumulated $1.027 billion in net international reserves since late January, with import coverage now at 6.5 months, the Central Bank reports.

Honduras's currency depreciated again on June 5, with the central bank's daily forex auction setting the dollar at L26.67 for purchase and L26.80 for sale, continuing a sustained slide blamed on IMF-backed exchange-rate policy adjustments.

Honduras's net international reserves accumulated $1.16 billion between January 27 and May 22, 2026, maintaining import coverage of 6.6 months, the Central Bank reported.

The Central Bank's weekly report for May 15–21 shows net international reserves continuing to build — driven by remittances and strong export performance — with Honduras already meeting the liquid-reserve target set for June 2026 under its IMF agreement, despite a modest weekly dip tied to external debt payments.