Forex trading is legal in Honduras and operates under a controlled exchange rate system managed by the Central Bank of Honduras. The Central Bank is responsible for monetary policy, managing the national currency called the Honduran lempira, and overseeing the stability of the financial system, while the National Banking and Insurance Commission regulates and supervises banks, financial institutions, and insurance companies (1). Honduras uses a crawling peg exchange rate that allows the lempira to fluctuate by seven percent against the U.S. dollar in either direction, with the Central Bank using an auction system to regulate the allocation of foreign exchange (2).
The government maintains tight control over access to foreign currency exchange through various regulatory mechanisms. Commercial banks are required to sell 50 percent of repatriated foreign exchange earnings to the Central Bank each night, and the daily exchange rate cannot exceed 100.075 percent of the average for the prior seven daily auctions, limiting devaluation to approximately 4.8 percent annually (2). Only authorized institutions are allowed to trade currency within national territory, with penalties imposed for violations, and unauthorized currency exchange or transaction manipulation can lead to severe penalties (1).
"The Central Bank uses an auction system to regulate the allocation of foreign exchange. Commercial banks are required to sell 50 percent of repatriated foreign exchange earnings to the Central Bank each night."
Individuals and entities holding foreign currency assets exceeding specified thresholds must report these holdings to the Central Bank of Honduras. The reporting requirements mandate disclosure of the amount held, sources of funds, account numbers, and maintenance of accurate transaction records, with substantial penalties for non-compliance (1). In 2024, Honduras' National Banking and Securities Commission banned financial institutions from holding, investing, facilitating, or trading in cryptocurrencies and similar digital assets not issued by the central bank, citing risks of fraud and money laundering (2).
Source:
https://lawgratis.com/blog-detail/finance-law-in-honduras
https://www.privacyshield.gov/ps/article?id=Honduras-Foreign-Exchange-Controls
Last updated: 15-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
