The bill to be submitted for discussion in the Legislature provides, among other things, that "... the legal tender will also be the dollar and that 'acts, contracts and obligations under any other legal currency, abroad, will be valid, effective and enforceable in the contracted currency, even if payment must be done through the courts. '"

An analyst from the CATO Institute, Juan Carlos Hidalgo, told Crhoy.com that "... the possibility of dollarization of the economy looks favorable, because Costa Rica is a 'small open' country, so it is not convenient to have an unstable currency such as the colon. "

Deputy Otto Guevara, one of the signers of the initiative, said that "... changing the currency is relevant because of exchange rate fluctuations of colon and the 'secret' interventions by the central bank, leaving in question the management of the entity in control of the price of the dollar. "

Source: Crhoy.com

More on this topic

Strong Dollar Income to Press Exchange Rate

July 2019

In Costa Rica, it is expected that the downward trend that has been showing the exchange rate since February will intensify in the coming months, when the $3.580 million begins to enter as a result of the issuance of Eurobonds and loans granted by external entities.

According to data from the Central Bank of Costa Rica (BCCR), between the beginning of February and July 30 of this year, there has been a fall of up to 44 colones per dollar, reporting a drop in the average rate in the wholesale market Monex from ¢613.87 to ¢570.13.

Dollar price exceeds ¢600

October 2018

The Costa Rican currency continues to depreciate, and the exchange rate in some Banks was already 600 Colones and more per dollar.

The upward trend of the exchange rate in Costa Rica has been observed in recent days. The Central Bank estimates that between September 27 and October 11, the exchange rate in the wholesale market Monex reported a clear upward trend, which is reflected in the increase from ¢570.75 to ¢597.43 per dollar, equivalent to a depreciation of 4.67%. [GRAFICA caption="Click to interact with graphic"]

You Want Dollars? Have a billion!

May 2017

At a press conference and in the face of continued exchange rate hikes, a Central Bank executive in Costa Rica said that if the public wanted to continue buying dollars, they had billions there.

This morning on Thursday, May 25, the price of a dollar 600 colones at some bank windows surpassed, dropping back to 594 after an announcement by the Central Bank that it will intervene in the market with up to $1 billion.

Time for Dollarization in Costa Rica?

March 2014

The volatility that the dollar has shown brings back to table the discussion on whether or not to dollarize the Costa Rican economy.

In his opinion piece in Elfinancierocr.com, Juan Carlos Hidalgo details the implications of the recent behavior of the exchange rate for the economy and suggests dollarization as a way of solving many of the problems that could soon occur if the dollar continues to rise.