From ANFE’s press release:

“This project is a reaction to the fact that during the past six decades, the Central Bank has artificially created economic winners and losers every time it intervenes in the market. In other words, monetary policy decisions have transferred wealth from one group of economic agents to another. In many cases, such reallocations of wealth go from those who less have to the more affluent ones.

So far, the country’s monetary and currency exchange decisions have been taken by the Board of the Bank, being very discretional in nature. The board does not have to provide explanations to anybody for its decisions. In several occasions, the Bank’s decisions have been in response to political priorities and not technical criteria, negatively affecting the wellbeing of Costa Ricans and the competitiveness of our economy”.

Read the entire text of the Monetary Responsibility and Dollarization Bill.

More on this topic

Dollar Price: Upward Trend Continues

October 2018

The impact of the strike, the uncertainty of the fiscal situation and the increased risk perception by investors and consumers, explain much of the depreciation that the Colon is suffering against the dollar in Costa Rica.

Figures from the Central Bank of Costa Rica (BCCR) suggest that between September 27th and October 5th the exchange rate in the wholesale market Monex registered a significant upward trend, which is reflected in the increase from ¢570.75 to ¢591.25 per dollar, equivalent to a depreciation of 3.59%.

Dollar: Troubled Waters Make for Good Fishing

May 2017

In an unstable exchange market, lack of transparency in the rules on intervention by the Central Bank of Costa Rica increases uncertainty and drives investors towards the safest currency.

EDITORIAL

The rise in the price of the dollar in Costa Rica is a negative factor for some sectors and positive for others, but generally negative for the economy, because it distorts companies' plans, diminishing their competitiveness, and because it increases market players' willingness to speculate.

Costa Rica: Central Bank will Not Change its Exchange Rate Policy

October 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.

The insistence with which exporters and tourism entrepreneurs have raised the need to depreciate the Costa Rican currency to recover some of the lost competitiveness in the external field was not enough to change the opinion of the monetary authority.

Uncertainty Over Dollar in Costa Rica

June 2014

A proliferation of articles, reviews and editorials on the exchange rate is the best example of the prevailing concern in a market waiting for a clear definition of the exchange rate policy by the Central Bank.

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In recent weeks, and while the President of the Central Bank of Costa Rica (BCCR) is denying it , warnings have been given over interventions in the foreign exchange market by the monetary authority.