# Honduran lempira

> currency of Honduras

**Wikidata**: [Q4719](https://www.wikidata.org/wiki/Q4719)  
**Wikipedia**: [English](https://en.wikipedia.org/wiki/Honduran_lempira)  
**Source**: https://4ort.xyz/entity/honduran-lempira

## Summary
The Honduran lempira is the official currency of Honduras, introduced in 1931 to replace the Honduran peso. It is named after Lempira, a 16th-century Lenca leader who resisted Spanish colonization. The currency is issued by the Central Bank of Honduras and is represented by the ISO code HNL.

## Key Facts
- **Introduction Date**: 1931
- **Replaced**: Honduran peso (1862–1931)
- **Named After**: Lempira, a Lenca leader
- **ISO Code**: HNL
- **Central Bank**: Central Bank of Honduras
- **Subunit**: Centavo (1/100, no longer in circulation)
- **Symbol**: L
- **Banknotes**: 1, 2, 5, 10, 20, 50, 100, 500 lempiras
- **Coins**: 1, 5, 10, 20, 50 centavos (discontinued); 1, 2, 5 lempiras
- **Currency Code**: HNL (per ISO 4217)
- **Numeric Code**: 340
- **Mint**: Casa de Moneda de Honduras
- **Inflation Rate**: Historically variable, influenced by economic policies and global factors
- **Exchange Rate**: Fluctuates, pegged to the US dollar in some contexts
- **Digital Representation**: Unicode symbol 💵 (generic currency symbol)
- **Security Features**: Advanced security elements in banknotes to prevent counterfeiting
- **Circulation**: Widely used in Honduras alongside US dollars in tourist areas
- **Historical Context**: Part of economic reforms to stabilize the Honduran economy

## FAQs
**What is the origin of the Honduran lempira's name?**  
The currency is named after Lempira, a 16th-century indigenous Lenca leader who fought against Spanish colonization, symbolizing national pride and resistance.

**When was the Honduran lempira introduced, and what did it replace?**  
The lempira was introduced in 1931, replacing the Honduran peso, which had been in use since 1862. This transition aimed to modernize the country's monetary system.

**What are the denominations of Honduran lempira banknotes and coins?**  
Banknotes are issued in 1, 2, 5, 10, 20, 50, 100, and 500 lempiras. Coins, though less commonly used, include 1, 2, and 5 lempiras, with centavo denominations discontinued due to inflation.

**How does the Honduran lempira relate to other currencies like the US dollar?**  
While the lempira is the official currency, the US dollar is widely accepted in tourist areas and major transactions, reflecting Honduras's economic ties to the United States.

**What institutions oversee the Honduran lempira?**  
The Central Bank of Honduras (Banco Central de Honduras) is responsible for issuing and managing the currency, implementing monetary policies to maintain economic stability.

## Why It Matters
The Honduran lempira is central to Honduras's economy, facilitating domestic and international trade. Its introduction in 1931 marked a significant step in the country's financial sovereignty, replacing the outdated peso. The currency's name honors Lempira, a national hero, reinforcing cultural identity. As a key economic indicator, the lempira's performance reflects Honduras's fiscal health, influencing policies on inflation, exchange rates, and foreign investment. Its use alongside the US dollar in certain contexts underscores Honduras's position in regional and global economies.

## Notable For
- **Cultural Significance**: Named after a national hero, symbolizing resistance and identity.
- **Economic Reforms**: Introduced during a period of modernization to stabilize the economy.
- **Security Innovations**: Incorporates advanced security features in banknotes to combat counterfeiting.
- **Dual Circulation**: Coexists with the US dollar in tourism and major transactions, reflecting economic pragmatism.
- **Historical Resilience**: Survived periods of hyperinflation and economic challenges, demonstrating adaptability.

## Body

### History and Introduction
The Honduran lempira was introduced on January 1, 1931, as part of broader economic reforms aimed at stabilizing Honduras's economy. It replaced the Honduran peso at a rate of 1 lempira to 1 peso, with the goal of modernizing the monetary system. The name "lempira" was chosen to honor the 16th-century Lenca leader Lempira, who resisted Spanish colonization, symbolizing national pride and indigenous heritage.

### Design and Security Features
Banknotes feature prominent Honduran historical figures and landmarks, such as Lempira himself, Francisco Morazán, and the Mayan ruins of Copán. Advanced security elements, including watermarks, holograms, and UV-reactive threads, are integrated into the banknotes to prevent counterfeiting. Coins, though less common due to inflation, depict national symbols like the coat of arms and notable leaders.

### Economic Role and Performance
The lempira serves as the primary medium of exchange in Honduras, with the Central Bank of Honduras managing its issuance and monetary policy. The currency's value fluctuates based on economic indicators, trade balances, and political stability. Historically, the lempira has faced challenges such as inflation and devaluation, prompting periodic reforms. The US dollar's acceptance in tourist areas and major transactions highlights Honduras's economic ties to the United States.

### Cultural and National Identity
The lempira's naming and design emphasize Honduras's cultural heritage and historical resistance. Lempira's legacy is celebrated nationally, reinforcing the currency's role as a symbol of sovereignty. This integration of history into the currency fosters a sense of unity and pride among Hondurans.

### Technical Specifications
- **ISO 4217 Code**: HNL (alpha-3), 340 (numeric)
- **Symbol**: "L" (e.g., L10 for 10 lempiras)
- **Subunit**: Centavo (1/100), though no longer in circulation due to inflation
- **Banknote Denominations**: 1, 2, 5, 10, 20, 50, 100, 500 lempiras
- **Coin Denominations**: 1, 2, 5 lempiras (centavo coins discontinued)

### International Relations and Trade
The lempira's exchange rate is influenced by Honduras's trade relationships, particularly with the United States, its primary economic partner. While not pegged to the dollar, the lempira's value often correlates with the US currency due to economic interdependence. This dynamic affects import/export activities and foreign investment in Honduras.

### Challenges and Reforms
The lempira has weathered economic crises, including periods of high inflation and currency devaluation. In response, the Central Bank has implemented measures such as adjusting interest rates and intervening in foreign exchange markets. These efforts aim to maintain the currency's stability and public trust, ensuring its continued role in Honduras's economic development.

### Connected Entities
- **Lempira (Person)**: The namesake of the currency, a Lenca leader who resisted Spanish colonization.
- **Honduras**: The sovereign state that issues and uses the lempira as its official currency.
- **Honduran Peso**: The predecessor currency replaced by the lempira in 1931.
- **Central Bank of Honduras**: The institution responsible for managing the lempira's issuance and monetary policy.
- **US Dollar**: Widely accepted in Honduras, particularly in tourism and major transactions.

## References

1. Freebase Data Dumps. 2013
2. GF WordNet