Taxis in Granada are relatively inexpensive, but they go by the Nicaraguan custom of charging per person. Expect to pay 10 - 20 C each to get across town.
If you're looking for a more romantic conveyance, horse-drawn carriages can be hired on the west side of Parque Central. Touts will often quote a ludicrous first price in the range of $10 - $15. Just start walking away and wait for the price to plummet. Viva's correspondent ended up paying 50 C for a one-way, fifteen minute ride.

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