Money in Nicaragua is a bit of a trip right now. If you're looking up 1 USD to Nicaraguan Cordoba, you probably see a number around 36.62. It looks stable. It looks predictable. But honestly, if you're actually standing at a puesto de bolsa in Managua or trying to pay for a literal vigorón in Granada, that number on your screen is only half the story.
Most people just Google the rate and move on. That's a mistake.
The Nicaraguan Cordoba (NIO) is a "crawling peg" currency, or at least it used to be. For years, the Central Bank of Nicaragua (BCN) deliberately devalued the currency by a tiny percentage every year. It was like watching a slow-motion car crash that everyone agreed was fine. But then, things shifted. In late 2023, the BCN announced they were freezing the exchange rate at 36.6243 Cordobas to 1 US Dollar starting in January 2024.
Zero percent devaluation.
It sounds great for stability, right? Maybe. But when a government decides the price of money is fixed, the "real world" price often starts to wiggle in ways that official charts don't show.
What's actually happening with the 1 USD to Nicaraguan Cordoba rate?
Nicaragua is a dual-currency economy. You can walk into a grocery store like La Colonia, look at the receipt, and see the total in both Cordobas and Dollars. They’ll take either. Because of this, the official rate set by the Central Bank of Nicaragua is more of a suggestion for the streets, though it's the law for banks.
If you go to a bank to exchange your 1 USD to Nicaraguan Cordoba, you're going to get hit with a spread. The bank buys your dollars for less than the official rate and sells them to you for more. It's how they make their cut. Usually, you’re looking at a gap of about 1% to 2%. That adds up if you're moving thousands.
The "Coyotes" and the Street Rate
Then there are the "Cambistas." You’ll see them on street corners, usually wearing aprons or vests, waving thick stacks of cash. They’re legal in Nicaragua. Surprisingly enough, they often give you a better rate than the actual banks.
Why? Because they have lower overhead. They want your dollars.
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But here’s the kicker: ever since the 0% devaluation policy kicked in, the gap between the official rate and the street rate has narrowed, but the availability of dollars can sometimes get tight. If everyone wants dollars and nobody wants to sell them at the fixed rate, you get a bottleneck. We aren't at "black market" levels like Argentina—not even close—but the friction is there.
Why the Cordoba stopped moving
For decades, the Cordoba was designed to lose value. It was predictable. You knew that your 1 USD to Nicaraguan Cordoba would be worth slightly more Cordobas next month. It was a 5% crawl, then 3%, then 2%, then 1%.
Then, the BCN just stopped it.
The official line is that the economy is stable enough and they have enough international reserves to back it up. As of 2025, those reserves have stayed relatively healthy, largely thanks to remittances. Nicaraguans living abroad, mostly in the US, send billions of dollars back home. This massive influx of USD keeps the Cordoba from collapsing.
It’s a weird cycle.
- Nicaraguans work in the US.
- They send USD to family.
- Family spends USD or converts it.
- The Central Bank sucks up those dollars to keep the reserves high.
- The Cordoba stays "stable."
If those remittances ever dried up, that 1 USD to Nicaraguan Cordoba rate would likely snap like a rubber band.
The hidden cost of a fixed rate
Inflation doesn't care if your currency is pegged. Even if the exchange rate stays at 36.62, the price of eggs, gallo pinto, and gasoline is still going up. This creates a "real" appreciation of the currency. Basically, your US dollars don't buy as much in Nicaragua as they did two years ago, even though the exchange rate hasn't moved.
It feels more expensive. Because it is.
If you're a digital nomad or a retiree living on a fixed USD income, you’ve likely noticed your "purchasing power" sliding. You're getting the same amount of Cordobas for your 1 USD to Nicaraguan Cordoba exchange, but the grocery bill is 15% higher. That’s the danger of a frozen peg in an inflationary world.
Practical tips for exchanging money in Nicaragua
Don't just use your ATM card everywhere. You'll get destroyed by fees and a terrible "dynamic currency conversion" rate.
- Check the BCN website. Always look at the official Tipo de Cambio on the Banco Central de Nicaragua site before you trade money. Know the floor.
- Small bills are king. If you bring USD, make sure they are pristine. I’m serious. If a $20 bill has a tiny tear or a "stain" from a pen, no bank or cambista will take it. It’s infuriating, but it’s the reality.
- The 100-dollar bill trick. Some street changers might give you a slightly better rate for $100 bills than for $1s or $5s. It's less paperwork and less bulk for them.
- ATMs give options. Most ATMs in Nicaragua (BAC, Banpro, Ficohsa) give you the choice to withdraw in USD or NIO. If you’re paying for a big hotel bill or a car rental, take the USD. If you're buying street food, take the NIO.
Understanding the "Comisión"
When you see a rate of 1 USD to Nicaraguan Cordoba online, that is the "mid-market" rate. No human being actually gets that rate. When you go to a bank like BANPRO, they might show the official rate as 36.62, but they will "buy" your dollar at 36.10. That 0.52 difference is their profit.
If you use a credit card, your bank back home might also charge a 3% foreign transaction fee.
Suddenly, your 36.62 Cordobas became 35.00.
The future of the Cordoba in 2026 and beyond
Economists are split. Some look at the massive international reserves and say Nicaragua can hold this 36.62 peg for years. Others look at the political climate and the reliance on remittances and see a house of cards.
If you’re holding a lot of Cordobas, you’re betting on the BCN's ability to keep those reserves topped up. If you're holding Dollars, you're playing it safe. In Nicaragua, "safe" usually wins.
Most locals keep their savings in USD accounts. Even if they earn Cordobas, they convert them immediately. That tells you everything you need to know about the long-term confidence in the local currency versus the greenback.
Navigating the "Daily Crawl" (That isn't crawling)
Back in the day, you had to calculate the "crawling peg" daily. Now, you just need to know if the BCN has changed its mind. Every month, the Central Bank publishes a table for the entire month's exchange rate. Since the rate is currently frozen, every day on that table says 36.6243.
It’s the most boring spreadsheet in finance.
But keep an eye on it. If that table ever starts showing different numbers for the following month, it means the government is letting the currency slide again to account for inflation or a drop in reserves.
Actionable Steps for Your Money
If you are traveling to or living in Nicaragua, stop treating the exchange rate like a fixed law of nature.
First, diversify where you keep your cash. Carry a mix of small USD bills ($1, $5, $10) and mid-sized Cordoba notes (100, 200). Use the USD for anything over $20 and Cordobas for the small stuff.
Second, download a reliable currency app like XE or OANDA, but set it to "offline mode" so you aren't stuck without a reference point when you're in the middle of a market in Masaya.
Third, never exchange money at the airport. This is universal advice, but in Managua (MGA), the rates at the airport kiosks are notoriously bad compared to what you’ll find just ten minutes away in the city center.
Finally, if you’re doing business in the country, contract in USD. It protects you from any sudden devaluations that could happen overnight if the Central Bank decides to unfreeze the peg. Most legal contracts in Nicaragua already include a "maintenance of value" clause that ties the Cordoba amount to the USD exchange rate anyway. Use it.
Monitor the Central Bank's weekly reports on "Reservas Internacionales Brutas" (RIB). As long as that number is above $5 billion, the 1 USD to Nicaraguan Cordoba rate of 36.62 is likely to hold steady. If you see that number start to dip sharply over several months, it’s time to convert any remaining Cordobas back into Dollars as fast as you can.
Stay sharp. The rate on the screen is just the starting point. The real math happens on the street.
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Expert Insight Note: The Nicaraguan financial system is highly centralized. While the BCN maintains the peg, the "parallel" market is the truest indicator of stress. Always compare the bank's "sell" price to the street "buy" price to gauge local liquidity.
Next Steps for Managing Your Currency:
- Check your bank's foreign transaction fees before using a debit card at an ATM in Nicaragua; these can often exceed 5% of the total withdrawal.
- Inspect every USD bill for even microscopic tears or ink marks, as these will be rejected by almost all Nicaraguan financial institutions.
- Use the 'Cambistas' for amounts under $200 to get a better rate than the bank, but ensure you are in a high-traffic, safe area like Plaza Inter or near the Metrocentro.