The Central Bank of Honduras (BCH) maintains its strategy to control inflation, which stood at 6.09% in May 2026. The institution has increased liquidity absorption through Open Market Operations, with a cumulative cost of 1.512 billion lempiras.
The Central Bank of Honduras (BCH) has intensified its monetary policy to address inflation, which reached an annual rate of 6.09% in May 2026. The entity has allocated 1.512 billion lempiras so far this year to absorb liquidity through Open Market Operations (OMA), a measure aimed at stabilising prices and strengthening access to foreign currency.
Measures to contain inflation and stabilise the exchange rate
According to the BCH, inflation in Honduras has exceeded the regional average. Over the past 25 years, the country recorded an average inflation rate of 5.0%, compared to 4.3% in Central America. The potential growth of the Honduran economy is estimated at 3.8%, slightly below the regional rate of 4.0%.
To mitigate inflationary pressures, the BCH has maintained a monetary policy rate aligned with that of the United States Federal Reserve (FED) and close to its neutral level. This strategy is complemented by increased liquidity absorption, which has a cumulative cost of 1.512 billion lempiras as of May 2026.
The plan also includes measures to improve access to foreign currency for both businesses and citizens, aiming to facilitate currency operations and meet market demand. This is crucial in a context where the availability of dollars has been a bottleneck for importers and exporters.
Review of foreign currency repatriation regulations
As part of its medium-term actions, the BCH is reviewing the Foreign Currency Repatriation Regulations to update and relax the deadlines applicable to the export sector. This measure aims to encourage the inflow of foreign currency and alleviate pressure on the exchange rate.
Furthermore, the monetary authority is developing a dynamic plan to strengthen the monetary policy framework and help reduce the country's structural inflation. The goal is to preserve macroeconomic stability and keep inflation within the long-term target range, which the BCH sets between 4% and 6%.
For Honduran companies, these measures provide relief in managing their foreign currency cash flows, although the cost of liquidity absorption could lead to higher credit costs. Citizens, for their part, may see greater stability in the prices of imported goods if the measures succeed in containing inflation.
The BCH is confident that these actions will promote sustainable economic growth. The next milestone will be the publication of the June inflation data, scheduled for mid-July, which will allow for an assessment of the effectiveness of the measures taken.
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