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LatinNews Daily - 08 April 2020

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In brief: Honduran central bank announces new measures

* The president of Honduras’s central bank (BCH), Wilfredo Cerrato, has announced new monetary policy measures as part of efforts to mitigate the economic impact of the coronavirus (Covid-19) pandemic, after the government first declared emergency measures on 15 March, which included the closure of all non-essential businesses. The latest measures announced by Cerrato include a reduction of mandatory investments in national currency from banks, which would free up about L6.5bn (US$262m), as well as the suspension of bond auctions in the second quarter of 2020, which would free up approximately L5bn. Cerrato also announced a reduction in interest rates on credit discount windows for the financial system. For example, in the case of standing credit facilities, this has been reduced from the monetary policy rate (TPM) plus one percentage point at the start of February, to TPM plus 0.50 percentage points (equivalent to a drop from 6.25% to 5.00%).