After more than two years of virtual immobility, the dollar started a rise which has been linked to changes in external variables, accompanied by a concentration of credit in the US currency.
Accompanying this depreciation of the local currency is an increase in the benchmark rate for dollars, a new indicator that the Central Bank started publishing a few weeks ago.
An editorial on Nación.com notes "...The new benchmark rate in foreign currency calculated weekly by the Central Bank has gone up.There has also been a slight rise in quotes of the colón against the dollar in the foreign exchange market.Could there be a relationship between the two movements? "
It is reported that the reason for the rate hike is"... in the opinion of those bankers who were surveyed ... the rise is due to a shortage , or perhaps less abundance, of dollars circulating in our environment. Closely linked to the lower liquidity is the high concentration of credit granted in that currency. "
The Central Bank has reduced the benchmark rate by 50 basis points as a result of stable performance shown by the economy.
The Board of the Central Bank of Honduras reduced, from 28 March 2016, the monetary policy rate by 50 basis points, fixing it at 5.75%.
From a statement issued by the Central Bank:
The Commission on Open Market Operations (COMA) at the Central Bank of Honduras (BCH), in ordinary meeting No.126 on March 15, 2016, discussed the recent developments and prospects for the main macroeconomic and financial indicators, both at the national and international level.
Noting the political system's inability to agree on fiscal issues, Standard & Poor's has downgraded, from BB to BB-, the rating for the country's long-term debt, giving it a negative outlook.
Costa Rica Long-Term Ratings Lowered To 'BB-' On Continued Fiscal Deterioration; Outlook Is Negative
25 Feb 2016
Source: Standardandpoors.com
OVERVIEW
The combination of growing spending pressures and lack of tax reform has weakened Costa Rica's public finances and raised its vulnerability to
The main bank reference rate has dropped from 5.75% to 5.70%, where it will remain until at least Wednesday March 2.
The passive base rate went down again, adjusting to the new calculation methodology implemented by the Central Bank in early February. The reduction is from 5.75% to 5.70% where it will remain this Thursday February 25 until at least March 2.
The interest rate rise in the US and the perceived risk of the Salvadoran economy have taken their toll on foreign debt bonds, whose yields have risen by about 2% in recent weeks.
This increase in yield of debt securities traded on the international market will be reflected in the forthcoming issues made by the government, which, according to economic analyst Mauricio Choussy, "...
The Central Bank has reduced the monetary policy rate from 2.25% to 1.75% and the gross interest rate for overnight deposits through the Direct Central electronic system by 0.57%.
The reduction of the monetary policy rate by the Central Bank is the eighth since the beginning of 2015, justified by "... The determinants of inflation in the short term indicating that there is slack in production capacity and that inflation expectations show a downward trend. "
The rise of interest rates in US is one of the reasons behind the lower demand for Costa Rican debt bonds, which are perceived as riskier because they are not investment grade.
When US interest rates began to fall, international investors sought riskier options and performances, such as external debt bonds rated below investment grade in countries such as Costa Rica.
For the seventh time this year the Central Bank has lowered the monetary policy rate from 3% to 2.25%, and projected that inflation at the end of the year will be close to 0%.
The Board of the Central Bank of Costa Rica also decided to set the gross interest rate for overnight deposits (DON) at 0.95% as of October 21.
Due to the slow global economic recovery and the downward trend of inflation in the country, the Bank of Guatemala has decided to reduce the monetary policy rate from 3.25% to 3%.
From a statement issued by the Bank of Guatemala:
The Monetary Board, based on a comprehensive analysis of the external and internal situation, after having seen the Inflation Risks Balance, has decided to reduce the level of the leading monetary policy interest rate from 3.25 to 3.0% .
In July, the economy grew at 3.4%, above the growth rate of 2.7% recorded in the same month in 2014.
Monthly Economic Activity report by the Central Bank of Honduras:
Honduran Economy
In July 2015, domestic production, measured by the IMAE original series showed a variation of 3.4%, higher than that reported in the same month in 2014 (2.7%). For its part, the cycle trend showed a variation of 3.1.
After recording four consecutive weeks of reductions, the passive base rate rose from 6.5% to 6.55%.
The main benchmark for loans and investments in the country registered an upward adjustment and will be located at 6.55% until at least Wednesday 16 September.
The passive base rate is an average of the deposit rates given by financial institutions for periods of 150-210 days.
For every coin of 25 cents made by the Royal Mint of Canada, the Panamanian government paid 19 cents.
Data collected from documents published on PanamaCompra by Prensa.com shows that "... This year, the MEF signed with the Canadian company a contract for the manufacture of 12 million coins in denomintions of 25 cents with a value of 2 million 280 thousand US dollars. "
The Central Bank of Costa Rica has put the monetary policy rate back down and from June 20 it will stand at 3.50%, after having been at 3.75% for a month.
The board of the Central Bank of Costa Rica (BCCR) took the decision to lower the reference rate, therefore maintaining the downward trend that has seen for several months. This reduction, which puts the indicator at its lowest level since 2006, comes at a time when the economy has been showing serious signs of slowing for a year.
In an attempt to boost the economy, for the third time so far this year, the Central Bank has made a downward adjustment to the monetary policy rate, lowering it from 4.5% to 4%.
The Board of the Central Bank of Costa Rica decided, unanimously and resolutely:
1. To fix the monetary policy rate at 4.0% annually, from April 23, 2015.
2. To fix the gross interest rate on deposits with a one day maturity date (DON) at 2.28% per annum from April 23, 2015.
The Central Bank of Honduras has reduced the monetary policy rate by 0.25%, setting it at 6.75%, which has created the expectation of lower interest rates in the domestic market.
From a statement issued by Banco Central de Honduras:
The Committee on Open Market Operations (COMA) at the Central Bank of Honduras (BCH by its initials in Spanish), in regular session No.116, analyzed recent performance and prospects for the main macroeconomic and financial indicators, both nationally and internationally.