Honduras Currency Facts: What It's Called, How Much It's Worth And More

Honduras' official currency is called the Honduran lempira (HNL).

Honduras is famous for its rich heritage, natural beauty, coffee, and cultural diversity in Central America. It ranges from the Mayan ruins of Copán to the Garifuna peoples of the Caribbean coast.

The Central Bank of Honduras is the issuer of lempiras, represented by the letter L. These are divided into 100 cents, or centavos, similar to the U.S. dollar. There are eight different currency denominations, including one, two, five, 10, 20, and 50-cent coins.

If you like reading about Honduras currency, you should read on to find out more in detail. You should also check out our other facts articles on Haiti history facts and Honduras history facts.

Understanding The Honduran Lempira

In 1931, the Honduran lempira was placed into circulation as a part replacement for the Honduran peso. Coins initially debuted in 1931, followed by paper cash in 1932. With the formation of the Central Bank of Honduras in 1949 and the nationalization of the Honduran payments system in 1950, the Honduran monetary system had matured to its current form.

Though the Honduran Lempira was declared the official currency by the National Congress of Honduras before 1950, it was not until the establishment of the banks that the government was able to implement it as a monetary standard.

There were only two Honduran banks before this event, and the majority of the country's population had limited access to financial services.

In 2010, a 20-lempira note printed on polymer began circulation to boost security.

The Honduran currencies are managed by the Central Bank of Honduras, which releases banknotes in denominations of 500, 100, 50, 20, 10, 5, 2, and 1 lempiras. Coins in the denominations of 5, 10, 20, and 50 centavos are also minted by the bank.

History And Hardships For Honduras And The Lempira

Many ancient cultures, notably the Maya, lived in Honduras, which is located in Central America. Beginning of the 16th century, many of these ancient peoples' cultural customs merged with those of the Spanish Conquistadors. Silver mining was crucial to the native people's survival during the Spanish conquest.

The country officially obtained independence from Spain in 1821 and has had a long history of political unrest, which continues today. It is one of the Western Hemisphere's poorest countries.

Silver, not fruit, was Honduras' first major export, accounting for 55 percent of the country's exports in the 1880s. The New York and Honduras Rosario Mining Business, which controlled numerous productive mines, was the most famous company operating in Honduras throughout the 19th century.

In the early 1910s, bananas became increasingly important, and by 1929, Honduras was exporting $21 million worth of this fruit each year.

The World Bank classifies Honduras as a low-middle-income country. As of 2019, the country has an annual inflation rate of 4.37 percent and a gross domestic product growth rate of 2.65 percent.

Monetary Reform Of 1950

Several domestic crises, a military coup, and border disputes with neighbor El Salvador plagued Honduras in the 1940s, 1950s, and 1960s. People and the country suffered financial challenges as a result of these issues.

In the 1980s, however, a new constitution and general elections raised hopes for prosperity. These dreams were dashed in 2009 when a coup took place, and the international community and other currencies condemned this action.

Honduras' economy is still reliant on commodity exports such as bananas, and this agricultural focus makes the country vulnerable to natural calamities. Soil degradation is being caused by logging, and mining operations have polluted Lake Yojoa, the country's primary supply of freshwater.

Hurricanes Fifi in 1974 and Mitch in 1998 are two examples of natural disasters that significantly impacted the country's banana production and, as a result, the whole Honduran economy.

Central Bank Of Honduras

Although Honduras remains one of the world's poorest countries, the government has attempted to stimulate economic growth through privatization and free trade agreements in recent years.

Honduras is Central America's second-largest Spanish-speaking country. The country's economy has risen at an average annual pace of 4.8% in recent years, which is the fourth-highest rate in Latin America.

Through regular banking sector restrictions, the Central Bank of Honduras has played a critical role in stabilizing the country's economic growth. Because of its proximity to the Pacific Ocean and the Caribbean Sea, the country is a popular business destination.

As a result, the government designated San Pedro as a tax-free zone, allowing multinational corporations to make significant investments in the country. Therefore, there is a large supply of U.S. dollars due to the influence of these worldwide corporations.

The Currency System

The pictures of prominent leaders in the country appear on different denominations of the paper currency. The most common figure is Cacique Lempira, who is seen on the 1 lempira note.

Former Honduran President Marco Aurelio Soto is depicted on the 2 lempira denomination of the Honduran currency.

In contrast, Francisco Morazán, the conqueror of the La Trinidad Battle, is depicted on the 5 lempira peso.

The portraits of other previous presidents, such as José Trinidad Cabañas and Juan Manuel Gálvez, are featured on the 10 and 50 lempira coins, respectively.

Dionisio de Herrera, the country's opposition leader, is depicted on the 20 lempira bill, while Jose Cecilio, a renowned philosopher, is seen on the 100 lempira note, and biographer Rosa Ramon is depicted on the 500 lempira note.

Another distinguishing aspect of lempira banknotes is that they are available in a variety of hues: L1 (red), L2 (purple), L5 (dark gray), L10 (brown), L20 (green), L50 (blue), L100 (orange), and L500 (black and magenta).

Did You Know...

Honduran silver was either hoarded or exported, and it was replaced by an influx of foreign currency that had previously moved freely inside this country in Central America.

The name 'peso' means 'weight' in Spanish and refers to the peso's roots as a silver currency. In 1862, the initial coinage was a provisional copper coinage with denominations of one, two, four, and eight pesos.

Inflation, interest rates, government debt, demand for foreign countries' currencies, and Honduras' fragile economy are all factors contributing to the depreciation of the lempira's value.

Oanda is a global leader in corporate FX solutions and a preferred partner in Honduras. Oanda is a great place to procure Honduran lempiras and provides a gold standard in foreign exchange data via their value exchange rates API and historical currency converter. Oanda offers clients an opportunity to trade in a broad range of Oanda financial products.

In 1950, the Bank of Honduras took over the printing of national currency, money bills, paper money, and other silver coins.

Although dollar bills are frequently accepted in the tourist-heavy Bay Islands and in businesses near popular tourist destinations, they are not widely recognized elsewhere. Several banks have major foreign ownership. A dollar is worth 24.1042 lempiras, and $100 is currently 2,409.68 lempiras.

Honduras is now expected to try to use fiscal and monetary policy to help the national economy grow more vigorously. Personal income tax rates range from 10% to 20%, and employers are responsible for collecting all income taxes.

In major cities, particularly the tourist-heavy Bay Islands, travelers can pay in U.S. dollars for hotels, and the prices aren't high, taking into account the number of travelers from around the world.

The exchange of dollars and also of world currencies is quite accessible. Hotels are easy to find and at reasonable prices.

If a US citizen is robbed or loses money in the Republic of Honduras, depositing cash in their account is the simplest way to send money to them.

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