Wednesday 3 March 2021

Dollar drops ¢10 this week due to year-end seasonality

The average price of foreign currency in the Monex market closed at ¢ 600.45 this Friday, November 20

QCOSTARICA – The dollar exchange fell ¢10.38 this week as a result of the traditional sales of foreign currency made by companies to pay bonuses and other end-of-year commitments.

People walking in front of the Banco Central (Central Bank) building in downtown San Jose

This is how two economists consider it: Noberto Zúñiga, from Ecoanálisis and the Academia de Centroamérica, and Pedro Aguilar, a consultant on economic issues.

- Advertisement -

The weighted average of the currency in the Monex Market closed the week at ¢600.45 and returned to the value it had last September. The sell price of the currency reached a maximum this year, of ¢616.45, on November 11 and ¢610.85 for buy on November 12.

“These weeks have seen a normal behavior of the Costa Rican dollar exchange market, in which for these times of the year and towards the middle of December, the supply of dollars increases, as transnational companies begin to prepare for the payment of the Aguinaldo (annual year-end bonus or thirteenth salary, an extra payment given to employees in December), offering their dollars to have colones, so that the exchange rate tends to fall. This is known as seasonality,” Aguilar said.

“The behavior is clearly seasonal, similar to what happened in previous years. But the unjustified abrupt appreciation of the colon this week is striking. It decreased a little more than ¢10 without improving the external position of the country,” considered Zúñiga.

The Banco Central (Central Bank) intervenes in the Monex market in several ways. One of them is with public sector negotiations: it sells or buys dollars from public sector entities and then replaces or places them in Monex.

- Advertisement -

In recent weeks, the Central Bank has sold the required currencies to the public sector, but has not bought them at Monex. This week it changed the policy and supplied the public sector with US$24.2 million and acquired US$42.4 million in Monex.

“It is not a downward trend because large fiscal imbalances persist, a fall in monetary reserves and the possibilities of an eventual downgrading of risk ratings if corrective measures are not adopted as soon as possible,” Zúñiga said.

The dollar exchange at the Central Bank this Saturday morning, November 21, is ¢603.63 for the sell and ¢597 for the buy. Last Saturday morning, November 14, it was ¢613.41 and ¢606.51, respectively.

 

- 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

Interventions by the Central Bank will be key so that Colon does not depreciate this yea

QCOSTARICA - The notorious influence of the Central Bank (Banco Central)...

Central Bank foresees economic growth of 2.6% this year

QCOSTARICA - The Costa Rican economy will grow 2.6% this year,...

MOST READ

South Korea company to conduct Costa Rica rail feasibility study

QCOSTARICA - Korea National Railway (KR) will conduct a feasibility study for the restoration of 98.3km of Costa Rica’s San José-Puntarenas rail line. The study...

False dentist worked from his garage and charged ¢ 100,000 for ‘braces’ that come off in a few hours

QCOSTARICA - A 30-year-old man, who posed as a dentist, set up an office in the garage of a house in Siquirres, Limón, where...

Costa Rica signs an agreement to become a full member of CAF

(BNamericas) - In order to strengthen the well-being of the population and the sustainable development of the country, Costa Rica has been incorporated a...

Costa Rica Celebrates 200th This Year

QCOSTARICA - This year Costa Rica celebrates 200 years of independent life. And the road to commemorate the 200th has begun with the launch...

Loans in dollars loses attractiveness for those who earn in colones

QCOSTARICA - Loans in dollars, which had a great boom in 2000, began to slow down since 2016 and today, despite the fact that...

Government rules out, for now, toughening sanitary measures for Semana Santa

QCOSTARICA - This Semana Santa, if the number of daily new cases continues on its current trend, we will not see the harsh sanitary...

Can you pay your bills by playing baccarat online?

Casino and baccarat is a term of love. Gambling is known to bring a lot of happiness provided your luck supports you, but how...

The Ultimate Guide to Moving to Costa Rica

Costa Rica is one of the world’s most desirable ex-pat locations and a retirement haven in Central America. The country is blessed with an...

Japan creates Ministry of Loneliness

Japan is beefing up measures against loneliness, taking a first major step toward comprehensively tackling a pervasive problem in the nation that has again...

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.