Tuesday 21 September 2021

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

Paying the bills


Covid Entry Requirements to Panama

RICO's DIGEST - "I heard" is a term often...

107 people died from covid-19 in Costa Rica in the last three days

QCOSTARICA - In the last three days, 107 people...

Mu variant of coronavirus: what we know about this mutation present in Costa Rica

QCOSTARICA - All viruses change over time. SARS-CoV-2 has...

Constitutional Court confirms constitutionality of mandatory vaccination

QCOSTARICA - Costa Rica's Constitutional Court or Sala IV...

Costa Rica worsens its international image as a place to do business

QCOSTARICA - Our country, Costa Rica, worsens in how...

Bukele calls himself ‘The coolest dictator in the worldwide world ’ in his Twitter biography

Q24N - The president of El Salvador, Nayib Bukele,...

U.S. to relax travel restrictions for vaccinated foreign air travelers in November

(Reuters) - The United States will reopen in November...
Paying the bills



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.

- Advertisement -

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 ElFinanciero.cr.

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.

- Advertisement -

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

- Advertisement -
Paying the bills
"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...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.