Nicaragua is a democratic republic and the largest country in Central America. Nicaragua (or Surrounded by Water as the name is literally translated) is bordered by Costa Rica to the South and Honduras to the North. Nicaragua’s proximity to Costa Rica has encouraged reciprocal tourism between the countries. On the western side of the country, Nicaragua’s coastline abuts the Pacific Ocean, while on the eastern coast the Caribbean Sea meets is shores. Nicaragua has three distinct regions: the Atlantic Lowlands, the North-Central Highlands and the Pacific Lowlands each possessing a unique climate and geography. The capital and largest city is Managua. The national currency is the Cordoba.