Several experts have mentioned factors that justify this forecast, including foreign currency purchases by the government.
It has been mentioned that the market is currently very "colonized" by investors enjoying higher returns on the local currency, the Colon, which has been paying out better rates than U.S. dollars.
But that trend, which has lasted for two years, is apparently over, and a cycle of dollar shortage is starting, leading to depreciation of the local currency. "In numbers, financial wealth in colones in 2011 reached annual growth rates close to 15%, whereas the amount in foreign currency increased between 0.7% and 2.1%. With a shortage of dollars it is assumed that the price will increase, an expectation that is reinforced because an increase in demand for foreign currency is expected, due to financial institutions granting more loans in that currency, so they need more to meet the demand.
The Directorate of Taxation issued a resolution which widens accelerated depreciation and is applicable to goods purchased and investments made this year.
María Siu wrote in the Prensa Libre website: "Now all taxpayers or declarers, without any resolution from the tax administration, may use the accelerated depreciation method on new tangible goods. Accelerated depreciation is part of the Government’s actions under the Shield Plan to face the economic crisis. Depreciation is an expense that companies can include in calculating the profits on which to pay their taxes. This mechanism applies only to the depreciation of new assets acquired or realized from January 1 to December 31, 2009."
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