QCOSTARICA – While devaluations are occurring all around, the Costa Rica Colon, the country’s currency, remains stable with the least variation against the U.S. dollar in the last 12 months.
In August (10) last year, the dollar exchange was ¢545, while today it is ¢541, less than 1% difference.
In general, the countries with the least variation have been those of Central America.
Countries that have suffered major changes are Colombia and Brazil, where, in only 12 months, their currencies have lost more than 50% against the U.S. dollar.
Venezuela is not included given the divergence between the official exchange rate and that of the streets.
| Costa Rica | 545,1 | 540,8 | -0,8% |
|---|---|---|---|
| Guatemala | 8,0 | 7,8 | -1,3% |
| Bolivia | 7,1 | 7,2 | 1,0% |
| Nicaragua | 26,5 | 27,5 | 4,1% |
| Honduras | 21,3 | 22,3 | 4,9% |
| Argentina | 8,3 | 9,2 | 10,8% |
| Peru | 2,9 | 3,2 | 13,4% |
| Chile | 579,4 | 678,1 | 17,0% |
| Uruguay | 24,1 | 29,1 | 20,8% |
| Paraguay | 4.364,8 | 5.322,7 | 21,9% |
| Mexico | 13,2 | 16,2 | 23,2% |
| Brasil | 2,3 | 3,4 | 51,7% |
| Colombia | 1.890,6 | 2.911,0 | 54,0% |
From Banco Central ce Costa Rica and OANDA
Source: Larepublica.net – El colón es la moneda más estable de Latinoamérica
How can that be. The colone is secured by the dollar. Which is worthless and highly inflated. It is not an issue if the dollar will collapse, but when. CR’s gold is tied up from the loans to the European banisters loans. I tell you one day we will be buying gold with rice. I believe CR will stand by their colone. The colon is a fiat currency, while it is backed by the dollar, another fiat currency. I am in the country, so we barter .
The current colon-dollar exchange rate is obviously a manipulated rate set by the Central Bank and does not reflect reality. If the true exchange rate existed, it would probably be somewhere between 600 and 700 colones to the U.S. Dollar. If this were to happen, many people with dollar loans and mortgages, but earing salaries in colones, would be in serious financial trouble, by having to finance this increased rate of exchange. It is unfortunate that the Costa Rica Government has lulled into complacency a significant part of the Costa Rican Society into acquiring such dollar financing. This circumstance cannot continue and many people will be hurt when it finally collapses.