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What can we expect for the dollar exchange with the ‘coronavirus effect’?

The dollar exchange rate is currently under strong pressure, towards a rise driven by situations such as the fall in tourism and exports, which decrease the amount of dollars available in the country; while, on the downside, it is driven by the fall in...

U.S. Dollar exchange rose ¢10.50 in last four sessions

The average price of the U.S. dollar in the Monex market, where amounts greater than $1,000 are traded, rose ¢10.50 in the last four sessions, going from ¢568.06, on Wednesday, March 18, to ¢578.64, this Tuesday, March 24. The Banco Central (Central Bank) decided to...

Government readies economic support measures for sectors hardest hit by coronavirus in Costa Rica

The Government of Carlos Alvarado is expected to present today, Saturday, March 14, a series of economic measures to counteract the negative effects that the covid-19 coronavirus is having on Costa Rican productive sectors. President Carlos Alvarado made the announcement on his Twitter account. Mañana anunciaremos...

Interest Rates Caps and Debtor Exclusion

In Costa Rica, a bill under discussion seeks caps on interest rates on loans, a measure that could lead to a reduction in credit for higher-risk borrowers. As part of the discussion in the Legislative Assembly, the heads of the Central Bank of Costa Rica...

Greater Stability in Dollar Exchange Expected

During 2019, the price of the dollar in Costa Rica registered multiple fluctuations; however, for this 2020, such abrupt variations are not expected, as the Banco Central de Costa Rica (BCCR) - Central Bank - starts the year with reserves close to US$9 billion. Data...

Costa Rica Reduces Rates Again

For the seventh time this year, the Banco Central de Costa Rica (Central Bank) decided to reduce the monetary rates as a measure to stimulate economic activity, this time from 3.25% to 2.75%. With this adjustment, the Tasa de Política Monetaria (TPM) - Monetary Policy...

Costa Rica Economic Activity Grows 2.5%

During October 2019, a 2.5% year-on-year variation was reported in the IMAE, a rise that is explained by the behavior of manufacturing activity and the service sector. According to the report of the Banco Central de Costa Rica (BCCR) -  Central Bank - with the...

Do not be alarmed by the exchange rate

During the last week, there have been important movements in the exchange operations of the Non-Banking Public Sector (SPNB), which has raised the concerns of Costa Ricans about the possible effects that this could have on the exchange rate. Experts agree that the purchases made...

Credit Does Not Rebound, Even With Lower Rates

Although the Banco Central de Costa Rica (BCCR) - Central Bank -  has been reducing the monetary policy rate to boost the issuance of bank credit, the speed with which the portfolio of loans in colones (national currency) grows continues to decrease. Official data from...

Intervention in the Foreign Exchange Market

With the aim of cushioning the fall in the price of the U.S. dollar exchange, which between November 5 and 25 was reduced in ¢18,35, in just two days the Banco Central (Central Bank) intervened buying more than US$30 million. Of the US$41.5 million negotiated...

Brakes to Monetary Policy Rate Reduction

After lowering the rate six times between January and October of this year, in its last review the Banco Central de Costa Rica (BCCR) - Central Bank - decided to maintain it at 3.25%, because the inflationary rate registers a significant slowdown. The last reduction...

U.S. Dollar Exchange Falls ¢16

Official figures from the Banco Central de Costa Rica (BCCR) - Central Bank  - show a downward trend in the dollar exchange in recent weeks, due to the growing supply of dollars in the local market, which is explained in part by the revenue...

Do you need to buy dollars? Exchange rate has fallen since November 5

The end of November could be a likely good time to buy dollars, specifically if you take into account the value of the currency since the beginning of the month. The price of the U.S. dollar in the Foreign Currency Market (Monex) registered a decline...

Banco Central Will Stop Minting ¢5 Coins

We all have them, worth almost nothing, but still can be useful. They are the little button-sized ¢5 coins that fill up your pockets or coin jar, that the Banco Central (Central Bank) will stop minting starting January 1, 2020. The Central Bank estimates there...

Costa Rica’s economic activity shows rebound

Costa Rica's economic activity shows a rebound in the last three months, according to the last series of the Indice mensual de actividad económica (IMAE) -  Monthly economic activity index - published, Monday (November 11) by the Banco Central (Central Bank). The Central Bank says...

Costa Rica on roadshow for crucial bond issue

Latin American bond market participants said they thought Costa Rica’s proposed US$1.5 billion dollar cross-border issue would find strong demand as the country announced a roadshow amid friendly market conditions on Tuesday. Global Capital reports Citi and HSBC will take B1/B+/B+ rated Costa Rica to...

Costa Rica Lowers Interest Rates

The Basic Passive Rate decreased from 5.65% to 5.50%, while the Effective Rate in Dollars also decreased, from 2.52% to 2.33%. The Banco Central de Costa Rica (Central Bank) published on Thursday the rates that will be in effect for the coming week. The Basic Passive...

Will the dollar exchange rate be volatile at the end of the year?

If you have been following the dollar exchange rate, you will have noticed a sharp increase in the last couple of days. Eurobonds, government loan and the aguinaldo (annual bonus) would influence could make the exchange volatile at the end of the year, depending...

Effective Rate in Dollars Keeps Rising

While the Tasa Básica Pasiva (Basic Passive Rate) remained at 5.65% for the second week, the Effective Rate in Dollars reported a new increase, in this case from 2.49% to 2.52%. The Banco Central (Central Bank of Costa Rica) said Thursday published the new Basic...

The Costa Rica Economic Recession – The “Elephant” In The Room

I’ve lived in Costa Rica for over twenty-one years, practicing law for seventeen of those years. I practiced law in Victoria, B.C, for fourteen years prior to moving to Costa Rica in August 1998. I would say, with that background, that I have a...

Basic Passive Rate Falls to 5.55%

In Costa Rica, the Basic Passive Rate fell to 5.55%, a level not reported since May 2016, and the Effective Rate in Dollars fell from 2.42% to 2.37%. The Banco Central de Costa Rica (Central Bank) published on October 16, 2019, that after not having...

It’s Been 80 Years Since Costa Rica Had An Indigenous Person On Its Banknotes

It's been 80 years since Costa Rica had an indigenous person on its new banknotes. The last being in 1939, and believed that it was the Talamanqueño king Antonio Saldaña The banknote was issued by the Banco Nacional, a 10 Colones note when the national...

Costa Rica’s Economic Growth Is Not Accelerating

In the second quarter of 2019, Costa Rica's Gross Domestic Product (GDP) grew 1.4% year-on-year, below the 3% reported for the same period in 2018, the Banco Central de Costa Rica (BCCR) - Central Bank - reported. The BCCR said that "a continuing a loss...

Costa Rica’s Monetary Policy Rate Falls Again

A “high uncertainty” in the global economy, associated to the tensions between the U.S. and China, together with the slow growth of production in Costa Rica caused the Central Bank of Costa Rica (BCCR) to reduce, for the fifth consecutive time this year, its...

Slight Improvement in Economic Activity in Costa Rica

After registering a 1.3% year-on-year variation in June, the Indice Mensual de Actividad Economica (IMAE) - Monthly Economic Activity Index - in July reached 1.5%, which is mainly explained by the performance of the special regimes manufacturing sector. After the first seven months of the...

Don’t Worry, President Has A Plan To Face Daunting Economic Conditions

President Carlos Alvarado and his economic team present a plan to face a daunting financial panorama announced by the Central Bank.

Dollar Exchange Increases

After the dollar exchange rate closed on August 23 at ¢565.88 per U.S. dollar in the MONEX wholesale market, an upward trend has been reported since then, the bigged changes occurring in the past several days, reaching ¢581.33 on Friday. Figures from the Banco Central...

Costa Rica’s Central Bank Slows Down Monetary Policy Rate

Among the arguments of the Banco Central de Costa Rica (BCCR ) - the Central Bank - it is worth highlighting that the international interest rates are adjusted downward. From the BCCR statement: The Board of Directors of the Central Bank of Costa Rica (BCCR), in...

Dollar In A Tailspin! Drops To May 2018 Exchange

The dollar exchange continues to drop, the official exchange rate this morning by the Central Bank set at ¢561.75 for the buy and ¢568.45 for the sell. The rate is the lowest since May 2018, according to data from the Central Bank. “The downward adjustment that...

Uncertainty Persists in Costa Rica, Even With Tax Reform

In Costa Rica, the Banco Central (Central Bank) predicted that confidence would again prevail among businessmen and consumers once the tax reform was approved, but that has not been the case. In December 2018, after a year of Legislative debates and after being reviewed by...

IBAN Account Number Begins Today Aug. 1

All financial institutions in Costa Rica will officially incorporate, as of today, Thursday, August 1, the new International Bank Account (IBAN) code, which will replace the previous customer account number. With the change, the 17 digit bank account and client account disappear, to give way...

“It’s one of slowdown, not a recession,” says Central Bank President

We are not in a recession and a contraction of the economy is not expected either, was the message on Monday by Rodrigo Cubero, president of the Banco Central de Costa Rica (BCCR) - Central Bank, when presenting the updated macroeconomic forecasts for 2019...

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