BCCR Decision Causes Dollar to Rise

Markets closed with the dollar at ¢518.34, ¢7.88 higher than the day before, after the Costa Rican Central Bank's (BCCR) decision to increase foreign exchange reserves.

Friday, September 3, 2010


©image: Colin

Since the BCCR announced the news, the dollar's price increased steadily, reaching a high of ¢523,01 before finally closing at ¢518.34.

Rodrigo Bolaños, president of BCCR, said that, "in the coming days it will be interesting to see what direction the exchange rate takes because just the announcement alone has caused it move up by several colones," reports Nacion.com.

More on this topic

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June 2010

The new head of the Central Bank of Costa Rica (BCCR), announced he is pondering the possibility of intervening between the currency bands.

Rodrigo Bolaños, new head of the BCCR, explained that the measure will seek to eliminate abrupt variations in the currency exchange rate.

Costa Rica Dollarization

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Fluctuations in the exchange rate in recent weeks are forcing the possibility to be seriously considered.

This is what Luis Loría, director of Costa Rica's National Association for Economic Development (ANFE in Spanish), told a conference looking at the pros and cons of dollarization in the light of international experience.

From Currency Bands to Floating Currency

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In its Inflation Report for May 2010, the Central Bank of Costa Rica announced the gradual shift from the existing current currency bands system to a flotation regime.

The report remarks that “one of the preconditions to move towards an inflationary targets system is the existence of a flexible way to determine the exchange rate, allowing the bank to focus its monetary policy on reaching said inflation targets, without worrying for exchange rate pressures”.

Devaluation Complicates Tourism in Costa Rica

November 2010

Two thirds of the country's tourism businesses have been negatively affected by the 15% increase in the value of the Colon.

The tourism industry in Costa Rica, which represents 7% of the GDP, receives most of its revenue in Dollars and pays most expenses in Colones. This puts them as one of the sectors most affected by the sharp appreciation of the Colon.


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