The government is reintroducing a crawling peg exchange rate system. This is when a currency is devalued by the central bank in line with inflation. The degree of devaluation will be determined by daily/weekly auction, conducted by the central bank. Theoretically, the Lempira has been in a free float since 2005, although in fact it has been steady for the past couple of years at L$19 to the US dollar.
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