The Monetary and Financial Policy Council of Nicaragua issued the Regulation on the Foreign Exchange Market and Currency Operations through Resolution CDMF-XIV-3-2025, dated April 30, 2025, which was published in La Gaceta, the Official Gazette No. 85, on May 14, 2025. The purpose of this regulation is to establish the rules governing control over the foreign exchange market in Nicaragua.
This regulation is significant as it addresses the circulation and trading of foreign currency, identifying five main actors:
- The Central Bank of Nicaragua (BCN).
- The Government.
- Banks and financial institutions supervised by the Superintendency of Banks and Other Financial Institutions (SIBOIF).
- Currency exchange service providers regulated by the BCN.
- Other entities or individuals authorized by the BCN.
The regulation is not exhaustive, as it grants the BCN the authority to authorize additional participants. The foreign exchange market remains open to free currency trading by authorized entities and individuals with the public, and these operations may include:
- Spot trading.
- Forward trading.
- Auctions.
- Any other mechanism established.
The regulation clearly establishes that currency freedom exists, provided that all activities comply with anti-money laundering and counter-terrorism financing measures.
Additionally, the regulatory role of the BCN in the foreign exchange market is strengthened. Although the BCN already held such a role, the regulation clarifies its supervisory authority to ensure financial stability and compliance with rules intended to prevent financial crimes.
Moreover, the previous legal framework (now repealed) was somewhat more restrictive regarding the powers the BCN now holds in overseeing currency operations in an open market like Nicaragua’s. Under the new regulation, the BCN is empowered to issue any necessary rules to fulfill the regulation’s objectives and ensure stability in the foreign exchange market.
