Sunday, 5 July 2020

Banco Central Spends US$185 Million To Shore Up Dollar Exchange


The Banco Central  de Costa Rica (Central Bank) this month has doled out US$185 million dollars to shore up the dollar exchange. The objective of the Central Bank’s intervention is to not allow the dollar to drop below ¢500 colones.

To avoid a drop the Central Bank says it has had to buy up a lot of the dollars that have flooded the economy this past month.

The amount the Central Bank has spent in the first 20 days of this month is 13 times the amount the month earlier, according to the

- paying the bills -

Experts believe that the Central Bank’s intervention policy will maintain the exchange rate to very similar levels as last year.

Mario Rivera, general manager of the Banco de Costa Rica (BCR), the exchange rate “will remain relatively stable”.

The Costa Rica exchange rate varies daily; it could go up or down a few colones or cents every day.

Financial experts say solutions being employed as a remedy for the distortions caused by the flood of speculative capital in the Costa Rican economy, have a common factor: they fix one end of the problem and exacerbate another. Many believe Costa Rica’s economy should be dollarized.

The Chamber of Exporters of Costa Rica (CADEXO) has detailed the losses by the sector caused by the significant appreciation of the colon in the last three years.

- paying the bills -

As explained by CADEXCO, producers of meat, sugar and coffee suffered more than ¢70,000 million colones in losses, while for the banana industry is it calculated at US$0.80 per box exported.

In the pineapple sector, meanwhile, the calculation is of a direct impact of more than 15%, mainly due to higher exchange rate via payroll taxes, wages and electricity, among other things.

According to an article in the real exchange rate in Costa Rica has depreciated by over 30% in a short period, removing a significant margin of profit for exporters.

"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Cuba Plane Crash: Company ‘Had Safety Complaints’

Solidarity and investigations after the accident. Cuban authorities are investigating the...

The Volcanos Of Central America (By Country)

Among the things most loved by travelers to Central America is...


They Want to Kill Me’: Many Covid Patients Have Terrifying Delirium

The New York Times - Kim Victory was paralyzed on a bed and being burned alive. Just in time, someone rescued her, but suddenly,...

New strain of coronavirus spreads faster than original: study

The variation of COVID-19 currently dominating global cases is more infectious than the original strain that emerged in China, according to a new study...

Daniel Salas affirms that the country can still flatten the curve

(QCOSTARICA) Although the 294 new cases of COVID-19 reported Wednesday will force the country to step back on measures to reopen, Health Minister, Daniel...

COVID-19 Costa Rica: Record high of 190 cases in 24 hrs and 44 in hospital

(QCOSTARICA) The Ministry of Health reported today, Tuesday, June 30, a record high of 190 new cases in 24 hours, for accumulated total cases...

Rains will be less intense this Tuesday

(QCOSTARICA) Today, Tuesday, June 30, the rains will be less intense than those yesterday throughout the national territory. According to the National Meteorological Institute (IMN),...

The Mexican men who want to end violence against women

(Q REPORTS) Since stay-at-home and social distancing measures were announced in Mexico to slow the spread of COVID-19, Saturdays have been busy for Arturo...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.