More Upward Pressure on Costa Rican Colon

Aldesa Group reports that given the decline in the Dollar's price at the wholesale market MONEX, the Central Bank (BCCR) is forced to buy dollars at the lower band of ¢500 per dollar.

Thursday, February 17, 2011

During the first two weeks of February purchases by the public sector in this market have intensified absorbing the supply of dollars. However, given the recent decline in purchases by this sector, the dollar has moved to lower prices and it has been the Central Bank the one buying the dollars offered at ¢ 500.

The entity announced increases of 0.5% and 0.75% on interest rates for deposits and 1% over the yield curve. The longer the term the greater the increase.

The intention of the rate hike is, as reported by the BCCR, to increase the attractiveness of their instruments. International organizations have pointed out repeatedly that one of the economic weaknesses of the country is the relative lack of impact of actions undertaken by the Central Bank to change monetary conditions in the country.

More on this topic

Costa Rica: Dollar Price Continues to Rise

May 2017

So far in May the average price of the dollar in the wholesale Monex market has increased by 2%, going from ₡566/US$ on May 1st to ₡578/US$ on the 17th.  

On May 17, in the Monex wholesale market, the average price of a dollar was quoted at ₡578 per dollar, while at bank windows the selling price reached ₡582. [GRAFICA caption="Clic para interactuar con la gráfica"]

Costa Rica: 6% Inflation Projected for 2014

July 2014

In its review of the macroeconomic program for 2014-2015, the Central Bank projects, as the most likely scenario, an annual inflation of around 6% at the end of 2014, and slightly less than 5% by the end of 2015.

The document issued by the Board of the Central Bank of Costa Rica places emphasis on keeping the inflation target at "4% with a tolerance of ± 1 percentage point for the remainder of the period from 2014 to 2015."

Costa Rica Central Bank Forced to Buy Dollars

December 2010

The Central Bank of Costa Rica (BCCR) reported the acquisition of $ 7.5 million to defend the lower limit of the band system governing the exchange rate.

The BCCR´s intervention on the foreign exchange market increased liquidity in Colones, which in principle, and given current conditions of the monetary system, it did not have the usual inflationary effect.

Economic Status of Costa Rica, August 2010

August 2010

Aldesa highlights a significant weakening in economic activity, a downward trend in inflation and a growing fiscal deficit.

Significant Weakening in Costa Rica's IMAE

The Monthly Index of Economic Activity (IMAE in Spanish) for June closed 2.96% up year-on-year. After reaching a high of 6.09% in February growth has slowed.

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