By Karol Pérez, translated by Maria Jose Serrano (Visitescazu.com) The “strong dollar” marked the year of 2015 and the “stability” will mark the exchange rate this 2016, as stated by Aldesa (Investment Advisers and Stock Exchange Market).
Last year the US economy grew at full speed and its strengthened currency brought down the currencies of many Latin American countries. However, in the case of Costa Rica the trend was rather towards the appreciation or strengthening of the “colón”, which was influenced by the funding of Eurobonds; the fall in oil prices, which caused less demand for dollars; and the fact that Costa Rica continues to generate large inflows of foreign exchange, due to its tendency to export services.
“The excess of dollars in the financial system resulted from the savings generated by the fall in oil prices (US $800 million), the settlement of investment portfolios of Costa Ricans and the inflow of capital by the indebtedness of the public and private sector,” Aldesa explains.
This means that the exchange rate could be between ¢510 and ¢545 per dollar.
Yet if new pressures to the appreciation of the “colón” are met, the Banco Central (Central Bank) announced a new plan to accumulate reserves to intervene in the market if necessary. This accumulation of reserves is up to US $1.0 billion, the largest announced to date. This, according to Aldesa will generate a kind of foundation to the exchange rate indicator which will guarantee a 2016 marked by stability.
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