Dollar Price Rise: How to Explain?

The effects of the pandemic and fiscal uncertainty are the factors that explain the rise in the price of the US currency in Costa Rica against the Colon, which on November 4 was quoted at 614.55 colons to the dollar.

Wednesday, November 4, 2020

According to the figures of the Central Bank of Costa Rica (BCCR), between October 19 and November 4 the selling price of the dollar has shot up, rising from ₡605.24 to ₡614.55, which is equivalent to a 2% variation.

According to Rodrigo Cubero, president of the BCCR, in the current scenario of economic crisis generated by the outbreak of covid-19, three types of pressure are being presented on the exchange rate.

Crhoy.com reviews that "... The first pressure is of a seasonal nature. Always between April and November there is an upward trend that would begin to disappear in December with the entry of resources from exports and the opening of tourism."

The article adds that "... the second has to do with the effects of the pandemic and the third is related to the uncertainty of the fiscal situation."

For the Central Bank executive, the factor that could affect the exchange market in the long term is the fiscal issue. The other two would be diluted in the coming months.

Check out the "System for monitoring markets and economic situation in Central American countries", prepared by CentralAmericaData.



More on this topic

Uncertainty Forces Exchange Rate to Rise

September 2020

The doubts generated by the fiscal proposal with which the Costa Rican government plans to discuss a loan with the IMF, would be the main cause of the recent upward trend in the dollar's price, which as of September 29 was quoted at ₡604,52.

The figures of the Central Bank of Costa Rica (BCCR) report an upward trend in recent days, since between September 11 and 29 the price has risen from ₡595,41 to ₡604,33, which is equivalent to a 2% variation. See full figures.

Costa Rica: Dollar Price Rises to ₡581.8

March 2020

In the last 15 days, the price per dollar in the wholesale market has risen ₡16, which can be explained by economic uncertainty and people's preference for buying dollars.

According to data from the Central Bank of Costa Rica (BCCR), a rising trend has been reported in recent weeks.

Uncertainty Over Dollar in Costa Rica

June 2014

A proliferation of articles, reviews and editorials on the exchange rate is the best example of the prevailing concern in a market waiting for a clear definition of the exchange rate policy by the Central Bank.

Editorial

In recent weeks, and while the President of the Central Bank of Costa Rica (BCCR) is denying it , warnings have been given over interventions in the foreign exchange market by the monetary authority.

Dollar Keeps Rising in Costa Rica

March 2014

The exchange rate in the wholesale market reached 558 colones per dollar, while at bank counters one dollar was being sold (on Wednesday March 5th) at 565 colones.

The price of the dollar in Costa Rica has not found an upper limit, trading at 565 colones per dollar at some bank counters, which is sixty colons more than earlier this year.

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