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.
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.
After the exchange rate closed on August 23 at ₡565,88 per dollar in the wholesale market MONEX, an upward trend has been reported since then, reaching ₡581,33 per dollar on September 5, which could be the result of a lower participation of the Central Bank in the exchange market.
Official figures from the Central Bank of Costa Rica (BCCR) report that between early February and mid-August of this year, there has been a fall of up to 48 colones per dollar, when reporting a drop in the average rate in the wholesale market Monex from ₡613,87 to ₡565,88.
In Costa Rica, the exchange rate closed on Tuesday, August 20th at 565.88 colones per dollar in the wholesale market MONEX, its lowest level since late May last year.
The exchange rate for this Tuesday closed at ₡565.88 in MONEX, its lowest level since late May last year. The current level implies an appreciation of the national currency against the dollar of 7.2% so far this year and -0.6% in the comparison of 12 months.
A greater supply of dollars, high local interest rates and a decrease in imports of durable goods explain the decreasing trend of the exchange rate in Costa Rica, which on June 18 reached the lowest level of the year.
In 2018, the dollar price against the Colon was on an upward trend, however, between February 6 and mid-June of this year, there has been a fall of up to 28 colones per dollar. [GRAFICA caption="Click to interact with graph"]
In Costa Rica, exporters ask the Central Bank to "avoid distortions in the fixing of the exchange rate because of the oversupply of dollars from the sources of financing for the fiscal deficit."
At the end of 2018 and the beginning of 2019, the dollar price against the Colon reported an upward trend, but from February 6 to mid-June 11, there has been a fall of up to 26 colones per dollar.
In Costa Rica, the exchange rate of the Colon against the Dollar began 2019 upwards, but from February 6 to mid-May, a fall of up to 26 colones per dollar has been reported.
After the average exchange rate against the Dollar in the Monex wholesale market increased from ¢609.05 to ¢613.87 between January 1 and February 6 of this year, there have been continuous declines in recent months, with one of the lowest levels of the year being recorded on May 16, ¢587.97.
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.
In Costa Rica, in the first half of the month, the exchange rate of the dollar with respect to the colon recorded a downward trend, however, from January 16 to 24 it increased almost 9 colones per dollar.
After the average exchange rate against the dollar in the wholesale market fell from ¢610.7 to ¢600.3 between January 8 and January 16, Monex has registered continuous increases in the last few days, rising to ¢609 on January 24.
Banks in Costa Rica are opposed to the Central Bank's proposal to modify the rules so that entities buy and sell dollars at the same prices, regardless of whether the amounts to be traded are large or small.
The objective of the changes proposed by the Central Bank of Costa Rica (BCCR) is for banks to always use the same exchange rate for their purchases and sales of dollars, regardless of whether they are large or small amounts.See "The Same Exchange Rate for Everyone"
In Costa Rica, the Central Bank has proposed modifying the rules for banks to buy and sell dollars at the counter, using the same prices always, regardless of the volume of the transaction.
A consultation was published in La Gaceta, in which the Central Bank proposes modifying the Regulation for Foreign Exchange Transactions.The objective is for banks to always use the same exchange rate for their purchases and sales of dollars, regardless of whether they are large or small transactions.
Contrary to what happened in previous weeks, in the last few days it has not been necessary for the Central Bank to intervene in the wholesale market by selling dollars.
In the Monex wholesale market the exchange rate closed last week at ¢572.90; While this Friday, June 15, it was around ¢570,70.
See the behavior of the exchange rate in the graph[GRAPHIC caption = "Click to interact with the graph"]
In Costa Rica several banks expressed their disagreement with the new standard which will prevent them from deciding how much of their capital will be denominated in dollars and how much in colones.
In an attempt to gain more control of the risk involved in foreign exchange transactions by banks and their impact on the exchange rate, the Central Bank has changed therules for foreign exchange cash operations, forcing banks to change the composition of their assets so that the proportion denominated in dollars is equal to the proportion of assets in that currency.
The Passive Base Rate has fallen to 4.35%, while the effective tax rate in Dollars dropped from 2.08% to 1.96%.
The Central Bank of Costa Rica (BCCR) released on Wednesday afternoon on December 7, news that the passive base rate reached a record low of 4.35%, very close to 4.25%, the lowest level reached by the base rate since records began in 2008.
[GRAFICA caption="Clic para interactuar con la gráfica"]
The passive base rate fell back down to 4.55%, while the effective rate in dollars went down from 2.11% to 2.08%.
The Central Bank of Costa Rica issued on Wednesday afternoon, November 30, news that the passive base rate dropped to the same level it was at two weeks ago, meaning that the rate will remain at 4.55% until Wednesday 7 December.
The passive base rate rose from 4.50% to 4.60%, while the effective rate in dollars rose from 1.93% to 2.11%.
BancoCentral deCosta Ricareleased news on Wednesday afternoon on November 23 that the passive base rate rose by 0.10%, meaning that the rate will remain at 4.60% until Wednesday November 30.