Uncertainty caused by the deteriorating fiscal situation and the economic slowdown are the reasons for the increase in the dollar exchange rate compared to the Colón, which has seen twelve days of consecutive increases.
According to Central Bank authorities, the depreciation of the local currency in relation to the US dollar is partially explained by the doubts generated by the deterioration of public finances and the absence, to date, of a legislative agreement to resolve at least part of the problem, all in the context of rising international interest rates.
After three months of relative stability, the price of the US currency compared to the Colón increased from ₡568 in mid-August to ₡571.6 at the end of the month.
Nacion.com reports that "...Although the variation is small, since it is only 0.64%, it breaks a stable period that was maintained from May 31 to August 14.In that period it remained very close to ¢568."
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.
As of June of this year, banks in El Salvador granted $6,121 million in loans to companies, registering an increase of almost 6% compared to the first half of 2017.
Figures from the Superintendency of the Financial System (SSF) indicate that out of every $100 in credits approved in June by banks in El Salvador, $45 was used to finance companies.
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).
The Effective Rate in Dollars increased from 2.35% to 2.40%, while the Passive Base Rate fell from 6% to 5.95%.
The Central Bank of Costa Rica published, on the afternoon of Wednesday, August 1, news that after a rise last week, the Passive Base Rate registered a reduction of 0.05% and will remain at 5.95% until Wednesday, August 8.[GRAFICA caption = "Click to interact with graphs"]
The Passive Base Rate went up from 5.85% to 6%, while the Effective Rate in Dollars rose from 2.25% to 2.35%.
The Central Bank of Costa Rica published news that after recording a decrease last week, the Passive Base Rate rose by 0.15%, and the level at which it will remain until next Wednesday, August 1 is 6%.[GRAFICA caption = "Click to interact with graphs"]
In order to try to stop the deceleration in the issue of loans in dollars, authorities in Costa Rica have decided to soften the rules required of banks who grant loans in this currency.
The National Council of Supervision of the Financial System (Conassif) has decided to temporarily reverse the stricter measures that banks must comply with when granting loans in foreign currency to those who generate income in Colones, with the aim of counteracting the deceleration that has been seen in the issue of bank loans.
The Basic Passive Rate has risen from 5.85% to 5.95%, while the Effective Rate in Dollars did not change and remains at 2.39%.
The Central Bank of Costa Rica published on the afternoon of Wednesday, June 27, news that after the reduction reported last week the Passive Base Rate went up 0.10% and the level at which it will remain until next Wednesday, July 4 is 5.95 %.[GRAFICA caption = "Click to interact with graphs"]
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.
The Basic Passive Rate fell from 5.95% to 5.85%, while the Effective Rate in Dollars increased from 2.31% to 2.39%.
The Central Bank of Costa Rica published, on the afternoon of Wednesday, June 20, news that thePassive Base Rate fell, this week by 0.10% and the level at which it will remain until next Wednesday June 27 is 5.85%.[GRAFICA caption = "Click to interact with graphs"]
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"
The Effective Rate in Dollars increased from 2.30% to 2.40%, while the Passive Base Rate fell from 5.95 to 5.90%.
The Central Bank of Costa Rica published on the afternoon of Wednesday, June 6, news that the Passive Base Rate registered a reduction for a second consecutive week, and will remain at 5.90% until next Wednesday, June 13.[GRAFICA caption = "Click to interact with graphs"]
The Passive Base Rate fell from 6% to 5.95%, while the Effective Rate in Dollars also fell, from 2.34% to 2.30%.
The Central Bank of Costa Rica published on the afternoon of Wednesday, May 30, news that after registering an increase last week, the Passive Base Rate fell by 0.05%, and will remain at 5.95% until next Wednesday, June 6.[GRAFICA caption = "Click to interact with graphs"]
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.