Nicaraguan regime accumulates USD 4,550 million in the Central Bank and the financial system

The Nicaraguan regime's deposits in the Central Bank totaled more than 144.6 billion córdobas through September. The Nicaraguan regime increased its deposits in the Central Bank of Nicaragua (BCN) over the past year, according to data released by Diario La Prensa. Through September, the regime's accounts at the institution totaled 144,634 million córdobas (USD 3,905.1 million). The amount represented an increase from the 100,165 million córdobas (USD 2,704.5 million) recorded in September 2025. The difference exceeds 44 billion córdobas (more than USD 1,188 million) and, according to the publication, is mainly related to higher tax collection. The highest balance was recorded in August, when the regime's deposits at the BCN reached 149,380 million córdobas (USD 4,033.3 million). In September, the figure dropped following a withdrawal of more than 4,746 million córdobas (more than USD 128.1 million), without a detailed explanation in the available information. The accumulation of resources in the Central Bank began in November 2020, after the sociopolitical crisis Nicaragua went through in 2018. At that time, state deposits at the institution amounted to 14,328 million córdobas (USD 386.9 million). The budget execution report of the Ministry of Finance and Public Credit, updated through June, indicated that the regime had transferred 43,969.1 million córdobas (USD 1,187.2 million) from taxes to the Central Bank. According to the official document, the resources are intended to contribute to macroeconomic stability, strengthen international reserves, and maintain liquidity to respond to fiscal risks, external shocks, effects of climate change, and natural disasters. State accounts at the monetary institution reached their maximum balance in August before registering a withdrawal of more than 4,746 million córdobas in September. (Photo: Central Bank of Nicaragua) The report attributed the result to the evolution of tax collection, the management of public spending, and higher investment spending. These factors allowed for a fiscal surplus higher than forecast for the first half of 2026. The transfer made through June came close to the total recorded in 2025. During that year, the regime transferred 44,572 million córdobas (USD 1,203.4 million) to the BCN. Diario La Prensa noted that deposits also increased in the National Financial System. Through August, official accounts in banks totaled 23,892 million córdobas (USD 645.1 million). That figure exceeded the 22,141 million córdobas (USD 597.8 million) counted in December 2025. The amount was close to the 24,359.1 million córdobas (USD 657.7 million) reported for the same period of the previous year. The draft General Budget of the Republic for 2027 contemplates expenditures of 168,238 million córdobas (USD 4,542.4 million). The amount implies an increase of 0.9% compared to the budget initially approved for 2026. The projected variation is equivalent to 1,459.1 million córdobas (USD 39.4 million). The growth in projected spending contrasts with the official estimate for fiscal revenues. The draft General Budget of the Republic for 2027 projects a fiscal surplus of more than 26,890 million córdobas. (EFE/Jorge Torres/Archive) The General Revenue Budget for 2027 amounts to 195,136.7 million córdobas (USD 5,268.7 million). The projection represents an increase of 13.6% compared to what was approved at the start of the 2026 fiscal year. The difference between revenues and expenditures would result in a surplus of 26,898.7 million córdobas (USD 726.3 million). According to the information cited by the outlet, fiscal surpluses are usually transferred to the Central Bank's accounts. An economist consulted by Diario La Prensa, who requested not to be identified for fear of reprisals, considered that the accumulation of reserves may be linked to the need to have resources available in the event of possible changes in external financing. "There is a clear eagerness on the part of the Government to continue accumulating reserves," the specialist said. He also argued that limited access to credit from multilateral organizations influences the decision to hold greater liquid resources. The analyst noted that spending restraint could have effects on public investment and other state allocations. That assessment is supported by the difference between the projected revenue growth and the reduced spending increase in the budget proposal.