Country in Central America. Honduras is bordered to the west by Guatemala, to the southwest by El Salvador, to the southeast by Nicaragua, to the south by the Pacific Ocean at the Gulf of Fonseca, and to the north by the Gulf of Honduras, a large inlet of the Caribbean Sea. Honduras has rich natural resources, including minerals, coffee, tropical fruit, and sugar cane, as well as a growing textiles industry. Inspite of this Honduras remains one of the poorest countries in the Western Hemisphere with the world's highest murder rate. Capital (and largest city): Tegucigalpa. Currency: Lempira (HNL).