The official exchange rate of the lempira, pegged at US$1=L2 since 1918, was dramatically devalued in 1990. Exchange controls had been introduced in 1982, resulting in a parallel currency market (black market) and several confusing official exchange rates operating simultaneously. Some of those rates were legally recognized in 1990 when President Callejas introduced a major series of economic policy reforms, which included reducing the maximum import tariff rate from 90 percent to 40 percent and getting rid of most surcharges and exemptions. The value of the lempira was adjusted to US$1=L4, with the exception of the rate for debt equity conversions, which remained at the old rate of US$1=L2. The official conversion rate of the lempira fell to US$1=L7.26 in December 1993. The president also introduced temporary taxes on exports, which were intended to increase central government revenue. Additional price and trade liberalization measures and fewer government regulations became part of his ongoing reforms.

Data as of December 1993

NOTE: The information regarding Honduras on this page is re-published from The Library of Congress Country Studies and the CIA World Factbook. No claims are made regarding the accuracy of Honduras Monetary and Exchange-Rate Policies information contained here. All suggestions for corrections of any errors about Honduras Monetary and Exchange-Rate Policies should be addressed to the Library of Congress and the CIA.