The Cordoba is the official currency of Nicaragua. The currency was named after the Francisco Hernández de Córdoba, the founder of Nicaragua. The Cordoba is divided into 100 centavos.
Economy
Nicaragua’s main source of economic stability is the agricultural sector. The country is considered the least developed country in Central America and is the second poorest country in the Americas in terms of nominal GDP.
Nicaragua’s annual GDP has gone down to almost 3% in 2009, as a result of reduced export demands, lower prices for agricultural exports, and low remittance growth in the world markets, mainly between Central America and the United States.
Remittances are the major source of income for Nicaragua. Remittances correspond to 15% of the total country’s GDP.
Apparel and textile exports are responsible for approximately 60% of Nicaragua’s annual GDP, and its advantage in the industry will probably increase due to minimum wage increases during the Ortega administration.
In 2004, Nicaragua secured a $4.5 billion reduction in its foreign debt under the Heavily Indebted Poor Countries.
Nicaragua’s economic status depends on international assistance to meet its internal and external debt fund obligations, but foreign donors have restricted funding after the electoral fraud in November 2008.
In October 2007, the IMF approved a new poverty reduction and growth facility intended to support the Nicaraguan government’s economic growth plan.
History
In March 20, 1912, the first Cordoba currency was introduced, replacing the Peso at a fixed rate of 1 Cordoba = 12 ½ Peso. It was initially equal to the US Dollar.
On February 15, 1988, the second Cordoba was introduced; it was equivalent to 1,000 of the first Cordoba.
On April 30, 1991, the third Cordoba, known as the Cordoba Oro, was launched with 5,000,000 = 1 second Cordoba.
