Costa Rica: Dollar Price Falls ₡16

Because of the growing supply of dollars in the local market, which is explained in part by the income of $1.5 billion from the recent issue of Eurobonds, so far in November the price per dollar in the wholesale market has been reduced at ₡16,55.

Friday, November 22, 2019

Official figures from the Central Bank of Costa Rica (BCCR) report a downward trend in recent weeks, as between November 5 and 22 the price has dropped from ₡585,52 to ₡568,97, equivalent to a 3% variation. See full figures.

This fall in the price of the dollar occurs within the framework of the issuance of $1.5 billion of debt securities in the international market, which were sold last November 12.

Norberto Zúñiga, an economist, told that "... we are in a period of significant surplus in the private currency market, to which are added the income from the issuance of Eurobonds and other multilateral loans. In the end, what can happen to the exchange rate, depends exclusively on the decisions of intervention and purchase of foreign exchange that the Central Bank decides."

Zúñiga added that "... If the Central Bank wanted to leave only the exchange market, the price of the dollar could continue to fall. In my opinion, additional exchange appreciations have more disadvantages than advantages, especially because the largest currencies come from external indebtedness to continue financing current expenditures."

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