The Honduran lempira, denoted by HNL, is the official currency of Honduras. One USD equals 18.75 HNL. The lempira is named in honor of the native leader who fought the Spaniards. His name translates to "gentleman of the mountain." His picture is on the 1-lempira bill and the 50-cent coin.
| Moody's Rating |
| Ba2 |
| S&P Rating |
| BB- |
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Sovereign credit ratings play an important part in determining a country's access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.
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Political Structure
Honduras is a democratic constitutional republic with three different branches. The executive branch consists of a president, first vice president, second vice president, third vice president, and the cabinet. The president is both chief of state and head of government. He serves a four-year term and elected by popular vote. The president of Honduras controls a lot of the government. He appoints the cabinet as well. The legislative branch is a unicameral National Congress with 128 seats available for members. All of the members are elected to the number of votes their party's presidential candidate receives. Each member serves a four-year term. Finally, the judicial branch is the third and last branch, which consists of the government. The judicial branch consists of a Supreme Court of Justice. The National Congress elects all the judges for seven years.
Prominent Figures
President: Ricardo Joest Maduro
First Vice President: Vicente Williams Agasse
Second Vice President: Armida Villela Maria De Lopez Contreras
Third Vice President: Alberto Diaz Lobo
Central Bank of Honduras: Banco Central de Honduras
President of Bank: Maria Elena Mondragon de Villar
Unique Characteristics
As a country that relies heavily on agriculture, making up about 20% of its annual GDP, Honduras took a hard hit from the effects of Hurricane Mitch in 1998. The banana crop, which formerly accounted for the country's second largest export, was wiped out in the storm. Years later, the banana farming industry in Honduras has still not reached pre-Mitch levels. Another important export sector for Honduras is cultivated shrimp. The country is also home to extensive forest, marine and mineral resources; although a recent development of slash-and-burn agricultural methods have greatly reduced the ample array of forests in the country.
Key Economic Factors
The economy has been in steady recovery since Hurricane Mitch hit in 1998, growing about 4% annually. Honduras' maquiladora sector is second in the world only to Mexico. The industry provides jobs to over 120,000 Hondurans and accounts for over $500 million annually in foreign exchange for the country. Honduras has always experienced heavy inflation, flirting around 11% annually. In the aftermath of Hurricane Mitch, Honduras received over $400 million dollars in relief from foreign nations including the United States under the Heavily Indebted Poor Countries Initiative (HIPC).
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