The volume of operations in the foreign exchange market totaled $1.067 billion during July 2018, registering an increase of 13% with respect to the same month in 2017.
The volume of operations in the exchange market totaled 1,068.0 million dollars in the month of July (purchases: US $447.0 million and sales US $620.9 million), with a daily average of 44.5 million dollars, reported the Central Bank of Nicaragua.
The volume of operations totaled $3.439 billion during the second quarter of the year, registering an increase of 12% with respect to the same period in 2017.
The Central Bank of Nicaragua (BCN) reported that the operations of financial and exchange entities with the public totaled US $3.0542 billion, reflecting a year-on-year increase of 2.1%.In relation to the operations of the Government, banks and financial institutions with the BCN, through the Exchange Desk, they totaled 384.5 million dollars (US $71.9 million in the II quarter of 2017).
At the beginning of 2018 Banco de Guatemala authorized intervention in the foreign exchange market for up to a maximum of $500 million, and by last Friday $349 million had already been purchased.
With the aim of curbing appreciation of the currency against the US dollar, at the beginning of the year the Monetary Board authorized intervention in the exchange market with the purchase of $500 million, and according to Banco de Guatemala, 70% was used in the first semester of the year.
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.
The volume of operations in the foreign exchange market totaled $1.166 billion in February 2018, registering an increase of 15% with respect to the same month in 2017.
From a statement issued by the Central Bank of Nicaragua:
March 28, 2018.The volume of operations in the exchange market totaled 1.1662 billion dollars in the month of February (purchases: US $584.8 million and sales US $581.4 million), with a daily average of 48.6 million dollars.
So far this year the Banco de Guatemala has intervened in the foreign exchange market buying $282 million, less than the $320 million bought in the same period in 2017.
As announced by the Central Bank authorities at the beginning of the year, the institution continues to implement actions to reduce the downward trend registered in the price of the local currency with respect to the Dollar.In January 2010 the Quetzal was quoted at Q8.40 for each dollar, and in January2018 this figure reached Q7.34.
The scheme that the Central Bank of Costa Rica will implement in order to have control over inflation will bring greater flexibility for the exchange rate.
In line with the scheme adopted in 2005 to control the growth of prices, the Central Bank has now decided to grant more flexibility to the inflation targeting system, which "... means that all of the monetary authority's policies will be aimed at achieving this goal, even theexchange rate."The nominal anchor is the inflation target, instead of a monetary aggregate or an exchange rate," explained Róger Madrigal, director of the Economic Division at the Central Bank."
The volume of operations totaled $3.377 billion in the last quarter of last year, registering an increase of 1% compared to the same period in 2016.
In the last three months of 2017, operations made by financial and exchange entities with the public totaled $3.315 billion, reflecting an interannual increase of 3%.Operations by the Government, banks and financial institutions with the Central Bank, through the Exchange Desk, totaled $62 million.
In a new attempt to minimize the downward trend registered in the price of the local currency against the dollar, Banco de Guatemala will intervene in the exchange market buying $500 million.
The exchange rate of the Quetzal with respect to the US Dollar has trended downwards since January 2010, when the Quetzal was quoted at Q8.40, falling to Q7.34, according to the latest record available in January 2018.The new measure that is being implemented from today, involves carrying out auctions on the foreign exchange market every Friday, of $50 million each, until a total amount of $500 million has been spent.
It is expected that under current economic conditions, the local currency will depreciate on average 3.6% against the US dollar in 2018.
The monthly survey on expectations of exchange rate variations up to December 2017 made by the Central Bank, foresees that during the next 12 months the Colón will depreciate by 3.6%, which would mean an increase of ₡20.52 according to the average price on the Monex Wholesale Market of ₡570.20 at the close of last year.
In the last three months, the exchange rate of the dollar against the Colón in the wholesale Monex market dropped from an average of ₡580 per dollar at the beginning of September, to ₡566 on November 27.
The main reason behind the reduction in the exchange rate in recent months could be an increase in the supply of dollars usually generated by multinational companies, on these dates, when more dollars are added to the country to pay taxes at the end of the fiscal period.See evolution of the exchange rate[GRAPHIC caption = "Click to interact with the graph"]
A rebound in demand for dollars explains the increase of just over 5 colones registered in the price of the American currency with respect to the colon from the end of May to date.
The price of the dollar in the wholesale Monex market rose again in recent days, in response to an increase in demand for foreign exchange, normal at this time of year.
The volume of operations in the exchange market totaled $973 million in July 2017, a decrease of 6% compared to the same month in 2016.
From a statement issued by the Central Bank:
The Central Bank of Nicaragua (BCN) published on September 1, 2017 the Statistical Report on the Exchange Market, corresponding to July of this year.
The volume of operations in the foreign exchange market totaled 972.6 million dollars (purchases: US $497.6 and sales US $475.0 million) during the month of July 2017 (daily average of US $38.9 million), showing a decrease of 6.0 percent, in relation to the same month of the previous year. This behavior was explained by a reduction in the volume of operations made by the BCN exchange desk with banks and financial institutions, followed by exchange offices with the public.
To encourage banks to place their assets in dollars in the local market and not abroad, the Central Bank will start offering electronic deposits in installments of between 30 and 1,800 days.
From a statement issued by the Central Bank of Costa Rica:
The Central Bank of Costa Rica will be offering in the next few days the facility to collect US dollars through electronic deposits.This service will be available in installments of between 30 and 1,800 days, for financial intermediaries supervised by the General Superintendency of Financial Institutions.