The World : Nicaragua Boosts Salaries

Nicaraguan President Daniel Ortega announced pay raises of up to 50% for public employees, including teachers and health workers, the day after ordering the sharpest currency devaluation this year, causing prices to skyrocket. The 52% devaluation brought down the cordoba, Nicaragua’s currency, from 9,500 to 20,000 per U.S. dollar. Speaking on government television, the leftist Sandinista president accused businessmen of fueling cost-of-living increases by speculating in dollars on the black market. In Managua and other cities, taxi drivers demonstrated to protest a 110% increase in the price of gasoline. Inflation was 15.5% in May, and the cost of living rose 20,000% last year.