Money
The Currency
The currency of Nicaragua is the córdoba (C$), often called a 'peso' by locals, or a 'cord' by expats. Córdobas come in coins of C$0.25, C$0.50, C$1, C$5 and C$10 and bills of C$10, C$20, C$50, C$100, C$200 and C$500. Bills of C$100 and larger can be difficult to change; try the gas station, bank or street money changer. Nica taxis and vendors are notorious for not having change for even the smallest bill though they may be hoping you just let them keep the change. The government deflates the córdoba about 5% every year to be competitive with the dollar
US dollars are accepted almost everywhere but not if they are worn, damaged or written upon. Yet they have no problem accepting tattered córdoba bills. We assume the counterfeiters are not wasting their time creating córdobas. It is recommended you use córdobas for these reasons and córdobas are usually easier to use, particularly at smaller businesses and anywhere off the beaten track, where people might not know the exchange rate or have easy access to a bank. While most places accept dollars you will often get change in cordobas and businesses may give you a lower exchange rate. Make sure you have some cordobas handy when using collective buses, taxis, or other small purchases.
The best exchange rate for US dollars and Euros is not in the banks. The hotels might give you a good rate but for the most part you will always get the best rate from the street money changers. Ask and they will tell you what rate they are giving and they calculate the money right there for you. The current exchange rate is:
25.6 córdobas to one US dollar (May 2014)
Prior to leaving the states or other country go to your bank and ask for all clean bills. If your bills have any rips or tears or are damaged, they will not be accepted anywhere in Nicaragua. Stores and banks check US notes carefully and declaring a US note counterfeit is not unusual.
When leaving Nicaragua, make sure you get rid of any extra córdobas or exchange them at the airport because the banks back home usually will not exchange them for you or will charge exorbitant fees. The US banks are not as friendly as before the global credit crisis. But didn't we bail them out with our tax dollars?
Credit Cards
Visa and MasterCard are widely accepted in the larger towns of and you can often count on midrange hotels and restaurants to take them. In places where electricity is unreliable - for instance, most of the Caribbean Coast - credit cards may not be widely accepted, so be prepared. Always carry some cash since it is embarrassing to finish a meal and find your credit cards are not accepted. Cash is still king here including paying for services such as a doctor or dentist. Expect a surcharge for using a credit card.
ATMS
You can get cash from the ATMs which are usually located in banks and gas stations. At this writing there were ATM machines in the cities of Chinandega, Estelí, Granada, Jinotega, Juigalpa, León, Managua, Matagalpa, Masaya, Rivas and San Juan del Sur. ATMs will dispense dollars or córdobas, your choice though your originating bank will probably charge a currency exchange fee. Make sure that the ATM you're using is part of the networks listed on the back of your bank card.
Banks usually provide full-time security guards on ATMs but use common sense. Nicaragua is a poor country and seeing you pull out the equivalent of six months of their local pay is a tempting target anywhere on this planet. No security guard and late at night is not a good time to pull money out of your account.
Banks
The banks in Nicaragua provide the usual bank services but not many for non-resident expats or tourists. Cashing an out-of-country check may take 15 business days for it to clear. Most of the larger bank branches have at least one employee or manager that speaks English which could come in handy. Some of the banks are starting to set up Euro accounts. Make sure you bring your passport when exchanging money or any other transaction at a bank.
More detailed information on opening accounts and other services for expats can be found in the "Living Here" section
Sales Tax and Tips
The sales tax is 15% in Nicaragua and a typical tip is 10% for services. A few years ago you rarely saw the 15% tax on your bill since it was part of the food, room or service cost. Tips were non-existent. Expats tend to be good tippers and tourists frequently overtip which frustrates us expats since it drives up costs for those of us living here. Of course, that is what you get when you live in a tourist center.
If you stay away from the larger cities and tourist places you will rarely see the 15% tax added on. If you're on a tight budget, ask if the menu or price list includes the sales tax.
New Money in Nicaragua
Nicaragua unveiled it’s new currency to mixed reviews by becoming the 27th nation to adopt a space age polymer bill and the fourth in Latin America behind Mexico, Guatemala, Brasil and Chile. The government is promoting the new money as “resistant, secure, durable and hygienic”.
The new plastic-like material feels like, well “plastic” and is very different from the paper ten and twenty córdoba bills that were in circulation. One unusual aspect is that new denominations are different sizes with the larger bills being the more valuable. I think it is much better though some bills seem to just fall out of my pocket.
The currency of Nicaragua is the córdoba (C$), often called a 'peso' by locals, or a 'cord' by expats. Córdobas come in coins of C$0.25, C$0.50, C$1, C$5 and C$10 and bills of C$10, C$20, C$50, C$100, C$200 and C$500. Bills of C$100 and larger can be difficult to change; try the gas station, bank or street money changer. Nica taxis and vendors are notorious for not having change for even the smallest bill though they may be hoping you just let them keep the change. The government deflates the córdoba about 5% every year to be competitive with the dollar
US dollars are accepted almost everywhere but not if they are worn, damaged or written upon. Yet they have no problem accepting tattered córdoba bills. We assume the counterfeiters are not wasting their time creating córdobas. It is recommended you use córdobas for these reasons and córdobas are usually easier to use, particularly at smaller businesses and anywhere off the beaten track, where people might not know the exchange rate or have easy access to a bank. While most places accept dollars you will often get change in cordobas and businesses may give you a lower exchange rate. Make sure you have some cordobas handy when using collective buses, taxis, or other small purchases.
The best exchange rate for US dollars and Euros is not in the banks. The hotels might give you a good rate but for the most part you will always get the best rate from the street money changers. Ask and they will tell you what rate they are giving and they calculate the money right there for you. The current exchange rate is:
25.6 córdobas to one US dollar (May 2014)
Prior to leaving the states or other country go to your bank and ask for all clean bills. If your bills have any rips or tears or are damaged, they will not be accepted anywhere in Nicaragua. Stores and banks check US notes carefully and declaring a US note counterfeit is not unusual.
When leaving Nicaragua, make sure you get rid of any extra córdobas or exchange them at the airport because the banks back home usually will not exchange them for you or will charge exorbitant fees. The US banks are not as friendly as before the global credit crisis. But didn't we bail them out with our tax dollars?
Credit Cards
Visa and MasterCard are widely accepted in the larger towns of and you can often count on midrange hotels and restaurants to take them. In places where electricity is unreliable - for instance, most of the Caribbean Coast - credit cards may not be widely accepted, so be prepared. Always carry some cash since it is embarrassing to finish a meal and find your credit cards are not accepted. Cash is still king here including paying for services such as a doctor or dentist. Expect a surcharge for using a credit card.
ATMS
You can get cash from the ATMs which are usually located in banks and gas stations. At this writing there were ATM machines in the cities of Chinandega, Estelí, Granada, Jinotega, Juigalpa, León, Managua, Matagalpa, Masaya, Rivas and San Juan del Sur. ATMs will dispense dollars or córdobas, your choice though your originating bank will probably charge a currency exchange fee. Make sure that the ATM you're using is part of the networks listed on the back of your bank card.
Banks usually provide full-time security guards on ATMs but use common sense. Nicaragua is a poor country and seeing you pull out the equivalent of six months of their local pay is a tempting target anywhere on this planet. No security guard and late at night is not a good time to pull money out of your account.
Banks
The banks in Nicaragua provide the usual bank services but not many for non-resident expats or tourists. Cashing an out-of-country check may take 15 business days for it to clear. Most of the larger bank branches have at least one employee or manager that speaks English which could come in handy. Some of the banks are starting to set up Euro accounts. Make sure you bring your passport when exchanging money or any other transaction at a bank.
More detailed information on opening accounts and other services for expats can be found in the "Living Here" section
Sales Tax and Tips
The sales tax is 15% in Nicaragua and a typical tip is 10% for services. A few years ago you rarely saw the 15% tax on your bill since it was part of the food, room or service cost. Tips were non-existent. Expats tend to be good tippers and tourists frequently overtip which frustrates us expats since it drives up costs for those of us living here. Of course, that is what you get when you live in a tourist center.
If you stay away from the larger cities and tourist places you will rarely see the 15% tax added on. If you're on a tight budget, ask if the menu or price list includes the sales tax.
New Money in Nicaragua
Nicaragua unveiled it’s new currency to mixed reviews by becoming the 27th nation to adopt a space age polymer bill and the fourth in Latin America behind Mexico, Guatemala, Brasil and Chile. The government is promoting the new money as “resistant, secure, durable and hygienic”.
The new plastic-like material feels like, well “plastic” and is very different from the paper ten and twenty córdoba bills that were in circulation. One unusual aspect is that new denominations are different sizes with the larger bills being the more valuable. I think it is much better though some bills seem to just fall out of my pocket.
