Tuesday 20 April 2021

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) to control the exchange rate is expected without stopping in the face of the currency devaluation last year and signals that it will continue.

This is how economist at Economía Hoy, Gerardo Corrales, considers it when asked what will happen with this indicator.

- Advertisement -

“It depends on the Central Bank, if there was no intervention and the market was free, it would say that the exchange rate is devalued because Covid-19 changed the conditions of supply and demand,” said Corrales.

As an example of this change in supply, he estimates that tourism was a large supplier, in 2019 bringing in some US$4 billion, but in 2020 it was close to $1 billion, according to his calculations.

As a relevant aspect is what the Central Bank will do with the dollars from the inflow of foreign financing (loans) when the government passes them on to exchange them to colones.

If the Central Bank decides to inject them into Monex, there will be an appreciation, that is, fewer colones would be required for each dollar; Whereas, injecting only a part or adding that money to their reserves, recovering the US$1 billion they used last year to shore up the colon, the effect would be opposite, analyzes Corrales.

- Advertisement -

 

- 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

Fitch maintains Costa Rica’s risk rating at ‘B’, due to deteriorating public finances

QCOSTARICA - Fitch Ratings affirmed this Tuesday Costa Rica's Long-Term Foreign-Currency...

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

(BNamericas) - In order to strengthen the well-being of the population...

MOST READ

Costa Rica exceeds one million vaccines received against COVID-19

QCOSTARICA - With the entry of the fifteenth shipment of vaccines against the SARS-CoV-2 virus, this April 13, Costa Rica exceeds one million doses...

Bad weather claimed two lives: one in Talamanca and another in Garabito

QCOSTARICA - Two men became the first victims of the rains and bad weather that has hit the country since last Wednesday, one of...

Ruta 32 (San Jose – Limon) CLOSED to 5am Friday!

QCOSTARICA - The Ruta 32, which connects San José with Limón, will be closed from 6:00 pm from this Thursday until Friday 5:00 am...

Sexual activity in Colombia also took its toll due to the pandemic

QCOLOMBIA – Sexual activity in Colombia had negative effects as a result of the covid-19 pandemic. This was demonstrated by the results of the...

Pacific and Central Valley will have intense downpours Pacific and Central Valley will have intense downpours at the beginning of the week

QCOSTARICA - The national weather service, Instituto Meteorológico Nacional (IMN) reported that intense rainfall will continue throughout the Central Valley, the Pacific and the...

San Jose as seen from Cartago

The capital seen from the north of Cartago. Photo: Rafael Pacheco

Heredia Hospital enables vaccination to speed up campaign against covid-19

QCOSTARICA - The San Vicente de Paúl Hospital in Heredia, enabled a vaccination program in the mobile unit installed outside of the medical center...

Canatur expects an “explosion” of American tourists for the second half of 2021

QCOSTARICA - Local tourism at Semana Santa gave a brief respite to the tourism sector, especially in beach destinations: the Costa Rican Chamber of...

Costa Rica’s Minister of Health first to be vaccinated with Astra Zeneca vaccine

QCOSTARICA - This Monday, April 29, 2021, Costa Rica began vaccinations with the Astra Zeneca vaccine with the Minister of Health, Daniel Salas, being...

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.