COSTA RICA NEWS – The Banco Central de Costa Rica (BCCR) continues to buy U.S. dollars to build up its foreign reserves. Between October 21 and November 19 it purchased a total US$165.13 million dollars, equalling 66% of its dollar purchase program set forth in the most recent revision of the Central’s macroeconomic program.
The Central Bank is leveraging a greater supply of foreign currency in the wholesale market to make its purchases. This excess has been reflected in recent days in the volume traded and a decline in the dollar exchange rate.
On November 19, the exchange rate at the Monex closed at ¢536.67 for the buy and ¢542.13 for the sell of one dollar. A week earlier, November 13, the exchange rate was ¢538.22 and ¢543.47.
Authorities at the Central insist that the transactions meet the seasonality trends in the exchange market, characterized by an increase in the amount of foreign currency at the end of each year, caused by foreign companies in Costa Rica making major exchanges of currency to pay taxes and bonuses.
The Programa Macroeconómico (Macroeconomic Program), established last July 31, is a plan to increase foreign reserves by US$250 million dollars between August 2014 and December 2015.
The BBCR can reach the goal at any time during the period, but cannot exceed it without the approval of the board of directors.