Dollar rate increasing in Costa RicaFor the third time in less than 60 days, the Central Bank of Costa Rica has again raised the monetary policy rate, this time from 2.50% to 3%.Friday, May 19, 2017
April 6 was the first time in the year that the Central Bank decided to raise the monetary policy rate (MPR), which had stood at 1.75% since January 2016. On April 27, again arguing short-term inflationary pressures, the entity raised the MPR from 2.25% to 2.50%. It has now been set at 3%, starting from May 19.
This decision was based on the following elements: The Central Bank's commitment to maintain the internal and external stability of the colón and ensure its conversion to other currencies, established in Article 2 of its Organic Law. The upward and downward trend in general and core inflation since the second half of 2016, as well as the behavior of 12-month inflation expectations, whose average value has remained close to the upper limit of the inflation target range, with a modal value that has increased from 3.0% to 4.0% since last March. ¿Busca soluciones de inteligencia comercial para su empresa?Costa Rica: Central Bank will Not Change its Exchange Rate PolicyOctober 2016 Despite constant complaints from the export sector, the Central Bank has been clear that devaluing the Colon against the dollar would mean a reversal of the exchange rate policy. Costa Rica: Slow Depreciation of Colon ContinuesSeptember 2016 The exchange rate in the wholesale Monex market has gone from ₡535.9 per dollar in mid-March to ₡553.9 in the first week of September this year. Further Devaluation of Costa Rica's Currency ProjectedMay 2014 It has been noted that the Costa Rican Colon could depreciate 20% more against the dollar in the U.S. and with that correction the exchange rate will reach 650 colones per dollar during 2014. Let's Cut to the Chase: Costa Rica Should be DollarizedJanuary 2013 When the monetary cauldron reaches boiling point, it is time to recognize that the best solution is to take the fuel away from the fire.
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