In the Central American state of Nicaragua, the official currency is the local Cordoba, which consists of one hundred centavos. This article will introduce the reader to the history of this currency, the appearance of banknotes and coins, and their other characteristics.
The appearance of the cordoba
The currency of Nicaragua is Cordoba. It was put into circulation in 1912, replacing the peso that operated on the territory of the state since 1838. The name of the currency comes from the name of the province of Cordoba. The new currency of Nicaragua was exchanged for pesos in a ratio of 1 to 5. This rate was caused by plans according to which one cordoba coin should contain 1.5048 grams of pure gold. While the old peso was made of silver.
This principle of the “gold” standard was never fully implemented, and the gold cordoba was not put into circulation. As an alternative, paper notes began to be used.
Denominations of Nicaraguan Currency
At first, the Central Bank of Nicaragua launched coins in denominations of ½, one, five, ten, twenty-five centavos and one cordoba. A fifty centavo coin later appeared. The currency of Nicaragua was also printed in denominations of one, two, five, ten, twenty, fifty and one hundred cordobas. After some time, notes and more denominations appeared in circulation - five hundred and one thousand.
Currency History
The first monetary reform in Nicaragua was carried out in 1981 after the end of the country's civil war. Owing to these dramatic events in the history of the state, the purchasing power of the local currency has significantly decreased. The issue of new money was accompanied by huge inflation, which led to the need for permanent denomination. Instead of issuing new-type banknotes, a different denomination was printed on old banknotes using black ink.
After several such modifications, the numbers on the banknotes became almost indistinguishable, which led to the appearance of a large number of fake cordobas. It was only possible to correct the situation in 1991, when the Central Bank of the state launched a new currency in Nicaragua. Such a “golden” cordoba also received a different design.
Appearance of coins and banknotes of the currency of Nicaragua
What does the Nicaraguan currency look like? The appearance of the front side of all coins is made using a triangular coat of arms, which contains five mountain peaks, a rainbow and a Phrygian cap. A triangle symbolizes equality, five volcanoes emphasize union and fraternity between the five states of Central America, a rainbow symbolizes peace, and a cap symbolizes freedom. In addition, on the coat of arms of Nicaragua there is also an image of the waters of two oceans and inscriptions around the triangle: REPUBLICA DE NICARAGUA on top and AMERICA CENTRAL below.
The reverse of coins in denominations of five, ten, twenty-five centavos, as well as one cordoba, contains the denomination in a circle in the center and the inscription just below “CENTAVOS” or “CORDOBAS”. Below is the year of issue of the coin, and at the very top, at the edge, the phrase EN DIOS CONFIAMOS, which means "We believe in God."
The currency of Nicaragua, in denominations of fifty centavos, five and ten cordobas, is presented below in the photographs. It should be noted that the figure on the coin in denominations of ten cordobas belongs to the national hero of Nicaragua Andrés Castro Estrada.
Nicaraguan cordoba paper bills are printed in different sizes. They also include excellent counterfeit protection. For example, watermarks corresponding to the theme of each bill, a protective strip with miniature text, matching images, relief details. In addition, elements with iridescence paint are used. In the last few years, polymer-based banknotes have appeared in circulation.