Q COSTA RICA – Now is the time to purchase dollars or investments if you want to save money, since the value of the U.S. dollar will remain low throughout the second semester.
The Central Bank has made million-dollar purchases, yet it has not been able to stop the exchange rate from declining. They have spent US$3.851 million dollars in the foreign currency market, which is the same amount they spent in all of 2022 (US$3.694 million).
The price of the dollar reflects an appreciation of 22% so far this year, leaving winners and losers in its wake.
“The direct purchases of foreign currency made by the Central Bank have caused the position of international monetary reserves to have strengthened, as well as the income of resources from Eurobonds. For the second semester, it is expected that the second placement of Eurobonds can mitigate external pressures and can lead to a reduction in interest rates in colones,” assured Melvin Garita, Deputy General Manager of Banco Nacional (BN).
In the near future, the national economy is likely to experience an influx of dollars due to the sale of Eurobonds and the inflow of funds from the International Monetary Fund (IMF), which amounts to US$521 million.
The first, a loan of US$275 million has been allocated for the Expanded Service agreement with the IMF, and a further US$246 million for the initial review of the measures of the Resilience and Sustainability Service.
“It’s a good time to make a reserve in dollars, because when the exchange rate increases you will earn that difference, it’s also good that you have a little money for an emergency,” said Elizabeth Morales, assistant manager of Coopecaja.
Another aspect that could have an impact is the Central Bank’s policy regarding interest rates could have an effect in the future, either in the medium or long term.
If the decrease in interest rates is accepted on July 26 by the Central Bank’s board of directors, the rate of colones investments will stay the same, resulting in a greater number of dollars in circulation.
“The drop in inflation will allow the Central Bank to lower the monetary policy rate, which will cause an increase in the demand for dollars in the medium and long term. In addition, a series of dollars are arriving as a result of the second tranche of Eurobonds for US$1.5 billion and other international loans, and these forces will allow the exchange rate to be contained and to remain stable,” highlighted Karla Arguedas, manager of Prival Advisory & Strategy.