Friday 18 June 2021

Banks Fear Increased Requests To Change Loans From Dollars to Colones

The dollar exchange has been on the rise, in the past week alone it has increase by more than ¢6 colones for each US dollar.

The dollar exchange has been on the rise, in the past week alone it has increase by more than ¢6 colones for each US dollar.

Q MONEY – A hike of ¢9.64 colones in the dollar exchange market since last Friday alone has some bank customers scared, and banks anticipating a significant increase in the number of their clients interested in changing their loans from dollars to colones.

The dollar exchange has been increasing steadily since the beginning of the month.

- Advertisement -

Although the wave of changes has not occurred yet, bank officials say they are willing to address the concerns of the clients.

However, they warn customers not to get carried away by the first rise, calling for prudent action in the current situation.

Peaking at ¢581.90 for the sell on Wednesday, the reference rate set by the Banco Central closed Thursday at ¢583.37, while the rate last Friday was ¢573.74.

Hairo Rodriguez, spokesperson for the Costa Rican Banking Association (ABC), says a devaluation of 10% from last year’s levels that would bring the dollar exchange close to or at ¢600 colones, would cause many to seriously consider switching their dollar loans to colones.

- Advertisement -

The banks are not required to make the change if a client requests, but, according to the ABC spokesperson, financial entities will surely address the concerns of their clients.

“It is a matter of satisfying the customer, but it depends on each bank, each is going to do a new valuation of the client, if it is asked for a change,” warned Rodríguez.

Economist Danilo Montero said that the current situation, expected by the end of last year or the beginning of the year, was totally foreseeable, but it is occurring now.

“I do not see the exchange rate unraveling and the debtor should consider the cost of commissions if he/she decides on changes to the loan,” warned the economist.

In general, the banking sector is asking for clients not to rush to decisions and expect no abrupt changes in the dollar exchange.

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Ricohttp://www.theqmedia.com
"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

The “rebound” effect boosted growth in Costa Rica’s economic activity

QCOSTARICA - Costa Rica's economic activity registered in April 2021 a...

Are the days of the US dollar below ¢600 no more?

QCOSTARICA - The last time we saw the dollar exchange below...

MOST READ

Today’s Vehicle Restriction June 16: 5 & 6 CANNOT circulate

Today, Wednesday, June 16, vehicles with plates ending 5 & 6 CANNOT circulate The measure is countrywide and applied between 5:00 am and 9:00 pm,...

Today’s Vehicle Restriction June 14: 1 & 2 CANNOT circulate

Today, Monday, June 14, vehicles with plates ending 1 & 2 CANNOT circulate The measure is countrywide and applied between 5:00 am and 9:00 pm,...

Today’s Vehicle Restriction: June 11, “EVENS”

Today, Friday, June 11, only EVENS can circulate. The measure is countrywide and applied between 5:00 am and 9:00 pm, save for those under the...

“Caso Cochinilla”: Name arose when comparing parasite with hidden corruption

QCOSTARICA - On Monday, the Organismo de Investigacion Judicial (OIJ) moved to the raid, seize and arrest of their investigation into corruption of public...

Your cell phone can now notify you if you had contact with a positive case of covid-19

QCOSTARICA - Fifteen months after the national emergency against covid-19 was declared, Costa Ricans will have a digital platform where you can be notified...

Tourism’s path to recovery

QREPORTS - A new travel trends research paper released today by Tripadvisor®, the world's largest travel guidance platform, reveals that vaccine rollouts globally are...

Apple extended the life of its older iPhones

QTECH - Whether due to the global economic crisis caused by the Covid-19 pandemic or due to shortages of electronic components, raw materials, factory...

Simple to request certification of vaccines against covid-19 applied in Costa Rica and abroad

QCOSTARICA - The Ministry of Health issued a new guideline on Thursday that establishes the requirements to request the vaccination certificate against covid-19 in...

Rainy afternoons and nights this week in most of the country

QCOSTARICA - Characteristic of the rainy season, we will see rain in the afternoons and nights in the Central Valley, the entire Pacific coast,...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

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.