Concern over Dollar Price Decline

In Costa Rica, exporters and businessmen of the tourism sector are concerned about the decreasing trend that in recent months has reported the exchange rate, which on July 18 was quoted at ¢575.7 per dollar.

Thursday, July 18, 2019

Official figures report that between early February and mid-July of this year, there has been a fall of up to 38 colones per dollar, as the average rate in the Monex wholesale market fell from ¢613.87 to ¢575.69.

This declining trend is mainly attributed to the greater supply of dollars, high local interest rates, and a decline in durable goods imports, according to explanations from specialists in the field.

Laura Bonilla, president of the Chamber of Exporters of Costa Rica (Cadexco), told that they are "... extremely concerned about the trend that has had the exchange rate since December. Today, for every dollar, we are receiving ¢40 less. This makes us less competitive and hits the export sector more, maximum with the numbers down that is presenting the sector."

See “Warning of a Possible Fall in the Dollar Price

Shirley Calvo, executive director of the National Chamber of Tourism (Canatur), explained that "... Any variation in the abrupt or prolonged exchange rate, such as that experienced since February, affects the cost structure of companies and especially ours, which faced the high season with contracts that were agreed long before."

The behavior that is currently reported was predicted by the businessmen, because the export sector of the country, months ago asked the Central Bank "to avoid distortions in the fixing of the exchange rate by the oversupply of dollars from the sources of financing of the fiscal deficit.”

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