QCOSTARICA — In recent weeks, unusual volatility has been observed in the exchange rate of the US dollar against the Costa Rican colon. This behavior, characterized by significant and apparently unjustified fluctuations, has led the exchange rate to reach levels of up to ¢550 colones per dollar, but experiencing a subsequent downward reversal.
The current exchange rate is moving in an approximate range of ¢530 to ¢550 colones per US dollar, without there being specific or compelling factors that drive the demand for the dollar in the country.
This is how Elizabeth Morales, Assistant Manager of Coopecaja, explains it, who indicates that, given this situation, it is essential that Costa Ricans are fully aware of this volatility and take precautions in their purchasing, borrowing and investment decisions.
Taking advantage of opportunities when the exchange rate is low can be a smart strategy to acquire dollars, especially if you have foreign currency payment obligations in the future. According to Morales, this will make it possible to deal with debts with a more favorable exchange rate and avoid possible negative impacts on liquidity or currency conversion at times of dollar appreciation.
The Central Bank’s reference exchange rate; The latest exchange rates at the state and private banks as reported to the Central Bank (en ventanilla in Spanish).
“It is important that Costa Ricans take into account the current volatility of the dollar and prepare themselves adequately in their financial decisions. We recommend being careful and analytical when acquiring debts, considering the different options in the market, such as rates, terms and conditions. In addition, we suggest keeping savings in dollars, especially during periods of low exchange rates, to take advantage of future payments with more favorable exchange rates,” Morales highlighted.
These recommendations apply to both debtors and investors, since according to Coopecaja’s Assistant Manager, those who have debts in dollars must be especially attentive to volatility, since this can significantly affect their financial obligations. On the other hand, investors must also carefully evaluate the possibility of diversifying their investments in dollars, considering the current context of reduction in local interest rates, and maintaining a comprehensive vision of their financial strategies.
Morales suggests approaching the preferred financial institution in search of a guide that provides tools and solutions that contribute to the effective management of their resources.
“At Coopecaja, our commitment lies in ensuring the economic well-being and financial tranquility not only of our associates (customers), but also of the Costa Rican population. Therefore, we reiterate the importance of being informed and making responsible and well-founded financial decisions,” Morales commented.
