Pressure on Costa Rican money markets lifts the dollar

As pressure build up on Costa Rica's money markets, the only way seems to be up for the US dollar.

Friday, June 13, 2008


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The nation's current account balance is showing a large deficit, and flows of investment – both financial and direct – are down. "There's a combination of factors behind the rise in the dollar's exchange rate," said Andrés Víquez, manager of the Aldesa brokerage.

More on this topic

Costa Rica: Loans in Dollars Get More Expensive

May 2015

Arguing an attempt to control credit growth in dollars, the Central Bank will apply a reserve limit of 15% to banks that receive lines of foreign funding in that currency.

The banking sector has opposed the measure, asserting that it will result in an increase in the cost of credit in dollars, affecting the business sector, especially exporters and importers who normally resort to credit lines in dollars to finance their operations abroad.

Costa Rica Launches Battle Against Speculative Funds

January 2013

A bill is being prepared to impose taxes on money which enters the country seeking to exploit the gap between interest rates in local currency and in dollars.

Furthermore President Chinchilla has issued a directive to state banks to stop competing with each other to attract investments from large institutions, such as the Instituto Costarricense de Electricidad, the Social Security Department, or the National Insurance Institute. It also requires public institutions to make new investments exclusively in state banks.

Dollar Causes Headaches in Costa Rica

February 2014

The discretionality of interventions made by the central bank in the foreign exchange market could open the gate for unjust enrichment of those who have inside information.

EDITORIAL

In the best of democratic worlds, the intervention of public employees in the economy generates income transfers between the sectors within the economy, according to state policies that are largely accepted by the population.

The Upward Pressure Continues on the Dollar in Costa Rica

March 2009

The Central Bank of Costa Rica continues to intervene in the market to prevent the price from exceeding the upper limit of the current bands.

In its report "On the Market Today," Aldesa group reported that, "The Central Bank of Costa Rica continues to intervene in the foreign exchange market by selling dollars.

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