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In his blog for Nacion.com the analyst Jorge Guardia highlights that this intervention represents a trimming and sprucing within the limits and a fundamental change in Central Bank (BCCR) policy that lacked due transparency.
BCCR's report circulated to the Costa Rican financial system stated that the economy's current status makes this an opportune time to initiate a scheme to cautiously acquire foreign exchange reserves, given the prevailing uncertainty in international financial markets. It also adds that between 2 September 2010 and 31 December 2011 it plans to purchase reserves through MONEX worth up to $600 million, equating to approximately $50 million per month.
Rodrigo Bolaños, BCCR president, had told Elfinancierocr.com on 19 August that this kind of action could raise the exchange rate but that the need to print more colones could also affect inflationary goals.
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February 2011
The Costa Rican Colon is expected to depreciate less over the next twelve months, compared to what was expected a year ago, according to a survey made by the Central Bank of Costa Rica.
A year ago, in January 2010, the expectation was a devaluation of 5.5%, with an exchange rate of ¢ 563 at the time. That would have meant that one dollar would now be worth ¢ 593.
July 2009
The country's international monetary reserves were down $53.3 million last week, standing now at $3.931 million.
This drop is a result of the intervention by the Central Bank in MONEX, the wholesale currency market. To prevent the exchange rate from surpassing the fixed upper limit, the bank sold $32.8 million last week in this market.
October 2008
The Central Bank's international monetary reserves continued their descent from September 29 and October 3, falling by $92 million.
The current balance is the lowest since June last year.
The Central Bank continues to use its reserves to defend the ceiling (the maximum selling price of the US dollar) of the exchange rate system, since the exchange rate in the wholesale market has been stuck at the top for the last two months due to the high demand for currency in the market.
September 2009
The Central Bank of Honduras informed they increased their monetary reserves with these $150 million.
By providing this funds as special wire rights, the International Monetary Fund (IMF), becomes the first international entity recognizing Honduras interim government.
"The loan, in concession conditions, is part of the international support program by G-20 for developing economies.
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