RICO’s Q — The dollar exchange continues its downward trend, marking its lowest price in almost 10 years on December 19, reaching ¢527.95 for the sale, a similar value back until February 18, 2014, when it stood at ¢531.62.
According to analysts, the currency could decrease even more.
“It is very likely that the downward pressures in the exchange rate continue until the third week of December, and if the characteristic behavior of the last week of the year is maintained,” said Melvin Garita, general deputy manager of the BN strategy.
A similar criterion is that of Daniel Suchar, an analyst on economic issues, who acknowledges that the highest downward pressures could extend until December 20, a maximum date set in the country for the payment of the Aguinaldo (year-end bonus), and that coincides with a greater offer of dollars.
However, a question in the air is whether there is the probability that the dollar drops to ¢500?
Suchar points out that “thinking about an exchange rate to ¢500 is very far-fetched”, considering that there is little room for people to have to change dollars to colones in the remainder of the year. From this perspective, he forecasts that the exchange rate will come down a little closer to the ¢525 in the next few days and then begin to rise, closing the year at about ¢530.
“After December 24 and 25, the exchanges are not so strong and, although there is more influx of tourism, it is not such to think that the currency drops to ¢500 colones,” added Suchar.
Regarding the downward pressures, experts point out that they will depend on the main currency entries to the country, which come from exports of goods and services, as well as capital entries.
“An improvement in exports or higher capital tickets, such as direct foreign investment, could lead to a greater fall in the exchange rate. In addition, factors such as the drop in the price of oil or other raw materials can influence an additional decrease Of the exchange rate,” Garita added.
How is the fall of the dollar to its lowest level a decaded explained? Your guess is just as good mine. The experts are just throwing out theories, so your guess is as good as anyone else’s. The most popular one seems to be … (you fill the blank).