Honduras uses a crawling peg exchange rate that allows the Lempira to fluctuate by seven percent against the U.S. dollar in either direction (Resolution No. 284-7/2011). The peg is subject to the further restriction that any daily price be no greater than 100.075 percent of the average for the prior seven daily auctions. This secondary restriction limits devaluation to a maximum of approximately 4.8 percent annually (assuming the maximum devaluation daily). The Central Bank uses an auction system to regulate the allocation of foreign exchange. Commercial banks are required to sell 50 percent of repatriated foreign exchange earnings to the Central Bank each night.
Delegation of Authority – Authorised Dealers
By virtue of Resolution No. 284-7/2011, the Central Bank of Honduras has appointed commercials banks operating in Honduras as ‘Authorised dealers’, that is, to assist in the administration of exchange control in respect of the provisions of those regulations. Those are delegated authority.
Authorized dealers are required to carry out their exchange control duties in accordance with, and shall comply with the instructions, directions and requirement as are issued or made by the Central Bank.