The Central Bank of Honduras (BCH) approved Resolution No. 01/2026, amending the Regulation for Trading in the Organized Foreign Exchange Market (MOD). The amendment, in force since February 25, 2026, following its publication in The Gazzette, introduces changes to the foreign exchange allocation formula, U.S. dollar liquidity management, and the rules applicable to foreign exchange agents.
New calculation of auctioned amounts
The most significant change is set out in Article 13 of the Regulation. Under the new framework:
- The amount of foreign currency offered by the BCH in each auction will be 90% of the median foreign exchange inflows recorded over the previous 5 business days.
- The BCH may increase the auctioned amount based on seasonality and market conditions.
This adjustment introduces a formula tied to recent FX inflows, reducing operational discretion and aligning daily supply with immediate market behavior.
Mandatory sale of 100% of FX inflows
The Regulation maintains and reinforces the obligation for foreign exchange agents to:
- Sell to the BCH 100% of their daily foreign currency inflows, no later than the following business day.
- Refrain from making subsequent adjustments for over- or under-transferred amounts.
- Bear regulatory consequences in case of non-compliance.
This framework consolidates the centralization of foreign currency flows under the BCH’s administration.
Operational rules and participation limits
The Regulation also provides:
- Minimum auction bid amount: US $10,000.
- Daily limits:
- Individuals: up to US $100,000.
- Legal entities: up to US $1.2 million.
- A ±1% exchange rate band for bid submissions.
- FX holding limits for agents, with an obligation to sell excess balances on the following business day.
Impact on the private sector
The reforms are relevant for financial institutions acting as foreign exchange agents, as well as importers and companies with recurring obligations in U.S. dollars.
They also affect companies with foreign currency financing structures, whose cash flows depend on timely access to foreign exchange in the local market. In addition, investors with FX exposure in Honduras should factor these changes into their risk assessments and financial planning, as the allocation and management of foreign currency will now be more closely tied to recent system inflows and to the operational framework defined by the BCH.
Companies with a high dependence on foreign currency should reassess their internal cash flow planning processes, auction timing strategies, and hedging approaches, considering that the daily availability of U.S. dollars will be more closely linked to recent inflow dynamics within the system.
