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Honduras Monetary and Exchange-Rate Policies
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
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