The dollar exchange keeps showing a strong upward trend and rose ¢5.38 in one single day Wednesday over Tuesday.
The appreciation of the currency is due to internal and external factors. Locally, the increase is due to purchases by public entities in the wholesale market like the Monex, and at the same time the central government has not changed dollars (for colones), drying up the market.
External forces are increases in interest rates on international markets, coupled with the decision by the U.S. Federal Reserve not to keep throwing dollars into the market (to stimulate the economy), encouraging investors to pull their dollars from emerging countries.
By the close of business Wednesday, the purchase price for the dollar at banks in financial institutions was between ¢513 and ¢520 colones, while the sell ranged from ¢528 to ¢532.
This morning (Thursday) the dollar exchange is between ¢12 and ¢14 colones higher than at the beginning of the year.
Financial experts expect the dollar exchange to continue to rise in the short term, given the strong demand for the U.S. dollar by non-financial public sector companies like Recope (oil refinery) and ICE (energy and telecommunications). The El Financiero reports that this group purchased US$12 million on Monday and another US$11.2 million on Wednesday, higher amounts than last week, when there was no movement in the exchange rate.
A survey by economists in January, published by the Central Bank, indicates a 2.6% change for the coming 12 months, a rate that has already been overpassed.
Source: El Financierio
