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Managua is the capital of Nicaragua.

Understand

Managua is the capital city of Nicaragua. It is also the largest city in Nicaragua. The city has a population of roughly 1,800,000, composed predominantly of mestizos and whites; making it the second most populous city in Central America after Guatemala City.
Managua's location between the rival cities of León and Granada made it a logical and ideal compromise site in determining the nation's capital. Managua's economy is based mainly on trade. The city is Nicaragua's chief trading center for coffee, cotton, and other crops. It is also an important industrial center. Its chief products for trade include beer, coffee, matches, textiles, and shoes.
The city has been witness to the rise and fall of political powers throughout Nicaragua's history and suffered devastating earthquakes in 1931 and 1972. Managua is the economic, political, cultural, commercial and industrial center of Nicaragua. Since the 1972 earthquake, residential and business areas have been built on the outskirts of Managua. Managua has been dubbed as the Venice of Central America because of its escalating use of makeshift canals that can be found throughout the city.
Residents of the city and of the department of Managua are called Managüenses.

Budget

Nicaragua is one of Latin America's economically friendly destiantions. Its hotel, food and transportation costs are a fraction of its neighbors. Eating at local restaurants is extremely inexpensive, and for $30, a meal for four can be served at these locations. Fast food locations are relatively similar to those in North America and Europe in terms of price. High-end restaurants are also affordable. Foreign cuisine, like French and Italian specialities, are served at high-end locations for a fraction of the price found in North American and European cities. Transportation is equally affordable with bus trips for less than US$1.00 and taxi services. Hotels, as anywhere, vary from cheap hostels to full service five stars that can run into the thousands of cordobas.