{"id":37367,"date":"2025-06-06T00:00:48","date_gmt":"2025-06-06T06:00:48","guid":{"rendered":"https:\/\/garciabodan.com\/?p=37367"},"modified":"2025-09-05T09:45:11","modified_gmt":"2025-09-05T15:45:11","slug":"nicaragua-updates-legal-framework-foreign-exchange-market","status":"publish","type":"post","link":"https:\/\/garciabodan.com\/en\/nicaragua-updates-legal-framework-foreign-exchange-market\/","title":{"rendered":"Nicaragua updates legal framework for foreign exchange market"},"content":{"rendered":"<p><span data-contrast=\"auto\">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.<\/span><\/p>\r\n<p><span data-contrast=\"auto\">This regulation is significant as it addresses the circulation and trading of foreign currency, identifying five main actors:<\/span><\/p>\r\n<ul>\r\n\t<li><span data-contrast=\"auto\"> The Central Bank of Nicaragua (BCN).<\/span><\/li>\r\n\t<li><span data-contrast=\"auto\"> The Government.<\/span><\/li>\r\n\t<li><span data-contrast=\"auto\"> Banks and financial institutions supervised by the Superintendency of Banks and Other Financial Institutions (SIBOIF).<\/span><\/li>\r\n\t<li><span data-contrast=\"auto\"> Currency exchange service providers regulated by the BCN.<\/span><\/li>\r\n\t<li><span data-contrast=\"auto\"> Other entities or individuals authorized by the BCN.<\/span><\/li>\r\n<\/ul>\r\n<p><span data-contrast=\"auto\">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:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\r\n<ul>\r\n\t<li><span data-contrast=\"auto\"> Spot trading.<\/span><\/li>\r\n\t<li><span data-contrast=\"auto\"> Forward trading.<\/span><\/li>\r\n\t<li><span data-contrast=\"auto\"> Auctions.<\/span><\/li>\r\n\t<li><span data-contrast=\"auto\"> Any other mechanism established.<\/span><\/li>\r\n<\/ul>\r\n<p><span data-contrast=\"auto\">The regulation clearly establishes that currency freedom exists, provided that all activities comply with anti-money laundering and counter-terrorism financing measures.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\r\n<p><span data-contrast=\"auto\">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.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\r\n<p><span data-contrast=\"auto\">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\u2019s. Under the new regulation, the BCN is empowered to issue any necessary rules to fulfill the regulation\u2019s objectives and ensure stability in the foreign exchange market.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>The Monetary and Financial Policy Council of Nicaragua issued the&#8230;<\/p>\n","protected":false},"author":10,"featured_media":42642,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[226,229],"tags":[],"class_list":["post-37367","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-alert","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/posts\/37367","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/comments?post=37367"}],"version-history":[{"count":2,"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/posts\/37367\/revisions"}],"predecessor-version":[{"id":42641,"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/posts\/37367\/revisions\/42641"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/media\/42642"}],"wp:attachment":[{"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/media?parent=37367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/categories?post=37367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/tags?post=37367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}