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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.