Hedges are instruments whose results depend on an ongoing risk analysis of the exchange rate differential.
An article in Elfinancierocr.com states that "monitoring leading indicators, accounting, and using averages for time periods and curves are some of the recommendations provided by Amedeo Gaggion, HSBC's financial markets manager in the country."
In the Monex wholesale market the price of the currency came to 515.29 colones.
Dollar purchases by public agencies appears to be the reason behind the new increase seen in the exchange rate in recent days.
Specifically, the need for dollars by non-banking public entities, from whom the central bank acquires its foreign exchange, was the main reason for the rise, it does not seem to have been affected by other reasons from a macroeconomic point of view that may be impacting on the exchange rate.
The price of the dollar against the Colon has again started to fluctuate, after having spent several weeks at a relatively stagnant level.
In the last two weeks there has been a slight rise, of about six colones, at the banks exchange desks.
However, this rise has not appeared the way it normally does, ie first in the Monex wholesale market, where trading banks and financial institutions do business, and then in the exchange rate offered to the end consumer at exchange desks.
Starting January anyone that is properly registered will be able to buy or sell their dollars directly in Monex-Central Directo.
This will be possible since the Bank decided to integrate the Foreign Currency Exchange Market (Monex) to the Central Directo platform, which until now was used by companies and investors to make deposits at the bank.
They could participate as one more entity in the Foreign Currency Market, buying and selling Currency.
A resolution by the National Council for the Supervision of the Financial System (Conasif) allows for the expansion of the services offered by the exchanges to clients. Now their clients have the option of buy or selling dollars to these entities.
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