Depreciation Increases Prices of Rents

Because of the depreciation that the Costa Rican currency has been reporting in the past months, companies and individuals who rent properties will have to pay more colones in those contracts that have been agreed in dollars.

Tuesday, November 6, 2018

According to data from the Central Bank of Costa Rica, from August 16th to date, the Colon has registered in the wholesale market Monex a depreciation equivalent to almost 11%, leading the dollar price from ¢567.97 to ¢628.85.

In this regard, Grettel Fallas, manager of Real Estate Portfolio of Prival Investment Funds, explained to Crhoy.com that "... With a significant rise in the exchange rate, tenants who rent properties are forced to pay their rents in dollars (mostly of them) with more colones. In addition, those tenants who, because of the commercial nature of their business, import products in dollars should also pay more colones for those products."

Fallas added that "... These circumstances cause real estate funds to be affected in their income, and consequently, in the payment of returns to investors. Part of the risk to which Real Estate Funds are exposed and are disclosed in the investment prospects, therefore it is important for investors to be clear that these funds are long-term investments, and there may be a slightly complex condition in the market, although they may be very positive at other times."

See previous publications on the evolution that the exchange rate has been showing in Costa Rica.

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More on this topic

Dollar Price Goes Down

April 2019

In Costa Rica, the exchange rate of the U.S. dollar against the Colon began to rise in April, but from the 3rd to date, a fall of up to 12 colones per dollar has been reported.

After the average exchange rate against the dollar in the Monex wholesale market increased from ¢599.2 to ¢607.9 between March 29 and April 3, there have been continuous declines in the last few days, since as of this month's 17th it decreased to ¢595.8, one of the lowest levels of the year.

Colon Depreciation Declines

November 2018

After the fast depreciation that the Costa Rican currency suffered weeks ago against the Dollar, in the last seven days the exchange rate has fallen from ¢629 to ¢615 per dollar.

Between August 16th and November 6th, the exchange rate in the wholesale market Monex registered an increase of 11%, rising from ¢567.97 to ¢628.81.

Costa Rica: Dollar Price Slightly Falls

October 2018

The upward trend in recent weeks in the dollar's price against the Colon has slowed.

According to figures from the Central Bank (BCCR), the exchange rate on the Monex wholesale market increased between August 17th and October 11th, from ¢568.35 to ¢597.43 per dollar, equivalent to a depreciation of 5.12%.

Costa Rica: Dollar Price Falls 3% in a Month

July 2014

In the last 30 days the price of the dollar against the Colon went from 557 colones to 540.4 colones in the Monex wholesale market.

The decision to remove the non-fiinancial public entities from the wholesale market and less demand for foreign currency in recent weeks are the reasons for the drop of 17 colones in the price of the dollar.

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