Monetary Law

The monetary unit of Honduras is the Lempira, whose symbol is L. The Lempira is divided into one hundred parts called centavos.

As long as its value is not changed in the manner provided in the Law of the Central Bank of Honduras, the lempira shall be equal to 0.444.335 grams of fine gold.

Obligations to pay money, of whatever kind or nature that must be executed in Honduras, shall be liquidated and fulfilled in lempiras.

The following shall be excepted from the provisions of the preceding Article:

• a)

  Payments that, as a result of international transactions, must be made from Honduras to foreign countries and from foreign countries to Honduras.

• b)

  Remuneration in favor of persons or entities domiciled abroad for services rendered temporarily in the country.

• c)

  Minor transactions effected by tourists and travelers, which shall be subject to the regulations that the Board of Directors of the Central Bank of Honduras may issue, in order to prevent the circulation of foreign coins or bills in the national territory.

• d)

  Premiums and indemnifications stipulated in insurance contracts, provided that they comply with the regulations on this matter issued by the Board of Directors of the Central Bank of Honduras, which may prohibit the execution of certain classes of contracts when it considers them inconvenient for the exchange situation or for the economy of the country.

• e)

  Deposits in foreign currency that are established in Institutions authorized by the Board of Directors of the Central Bank to receive them, provided that it concerns repayment to the original depositors.

• f)

  Obligations in favor of juridical persons of public law or public interest that by virtue of legal provisions must be paid in foreign coins or foreign currency.

• g)

  Credit instruments that are issued either by the State, having complied with the requirements established by law, or by the Central Bank of Honduras, with prior agreement of the Board of Directors, provided that in either case monetary policy requires it for the benefit of the national economy.

The Central Bank of Honduras shall be the sole issuer of coins and bills of legal tender in the territory of the country. The bills and coins issued by the Central Bank of Honduras shall have legal force and unlimited liberatory power in the territory of the Republic. Persons or entities that circulate objects or documents with the purpose of serving as conventional currency shall incur the penalties established by the Penal Code for cases of counterfeiting.

The coins of the Republic shall be the following:

• a)

  A silver coin of one hundred centavos, which shall weigh 12.50 grams and shall contain 900 thousandths of fine.

• b)

  A silver coin of fifty centavos, which shall weigh 6.25 grams and shall contain 900 thousandths of fine.

• c)

  A silver coin of twenty centavos, which shall weigh 2.50 grams and shall contain 900 thousandths of fine.

• d)

  A copper and nickel coin of ten centavos, which shall weigh 7 grams and shall contain 75 percent copper and 25 percent nickel.

• e)

  A coin of five centavos, which shall weigh 5 grams and shall contain 75 percent copper and 25 percent nickel.

• f)

  A coin of two centavos, which shall weigh 3 grams and shall contain 95 percent copper and 5 percent tin and zinc.

• g)

  A coin of one centavo, which shall weigh 1.50 grams and shall contain 95 percent copper and 5 percent tin and zinc. The denominations and characteristics of the bills of the Central Bank of Honduras shall be those determined by the Board of Directors of said Bank by virtue of the authority granted to it by its law.

No one shall be obliged to receive in payment coins of a denomination lower than fifty centavos for an amount greater than twenty-five lempiras, except in case of special agreements.

The Central Bank shall exchange at sight to the bearer, without any charge whatsoever, national monetary species of any class or denomination that are presented to it for exchange, for bills or national coins of the denominations requested. If for unforeseen reasons, the Central Bank temporarily does not have coins or bills of the required denominations, it shall fulfill the obligation to deliver species of values that most closely approximate those requested.

The Central Bank shall register and demonetize coins and bills that have been damaged by use or for any other reason and that prove inappropriate for circulation, and shall exchange them for appropriate monetary species. However, it shall not exchange coins and bills of impossible identification, coins that show signs of filing, cutting or perforation, and bills that have lost more than three-fifths of their surface or all of their signatures. Such coins and bills shall be withdrawn from circulation and demonetized without any compensation. Notwithstanding, the Central Bank may exchange the monetary species determined to in the preceding paragraph provided that it is proven, to the satisfaction of the Central Bank itself, that the damage to such species has been due to fortuitous event or force majeure, and shall be subject, with respect to bills, to the following rules: a) Payment of the full value of the bill when at least three-fifths of the total surface are presented. b) For half of the bill, payment of half its value. In both cases the exchanged portion must contain, at minimum, one signature and a complete numbering.

The Central Bank may call for exchange its bills of any series or denomination that have been emitted more than four years ago as well as coins that are more than ten years old. The species that are called for exchange by virtue of this power shall maintain their liberatory power during a period of one year, counted from the date of their respective calling. After said term, such bills and coins shall lose their liberatory power and may only be exchanged, at par and without any charge whatsoever in the vaults of the Central Bank, during a period of three years, which may be extended at the discretion of the Board of Directors. Upon conclusion of this latter period, the exchanged species shall lose their value and shall be demonetized. The Central Bank shall be obliged to demonetize the species that have been exchanged.

Every person who has contracted an obligation to pay in silver currency shall be legally discharged by delivering to the creditor bills of the Central Bank of Honduras or minor coins up to the maximum fixed in this law.

The Decrees No. 102 of October 3, 1926, of March 28, 1930, 114 of March 10, 1931, 28 of January 14, 1932, 141 of March 27, 1934, and 116 of February 27, 1935, and any other legal provision that is opposed to the present, are hereby repealed.