The Effective Rate in Dollars increased from 2.33% to 2.46%, while the Passive Basic Rate remained at 5.80% for the second consecutive week.
On Wednesday afternoon, October 31st, the Central Bank of Costa Rica published that after the 0.05% increase of two weeks ago, the Basic Passive Rate did not change and will remain at 5.80% until next Wednesday, November 7th. [GRAFICA caption="Click to interact with the graph"]
In Costa Rica, the currency depreciation persists, with the exchange rate reaching ¢616 in the windows of some banks and ¢610 in the Monex wholesale market.
The increasing trend of the exchange rate in Costa Rica is not stopping. According to data from the Central Bank, between September 27 and October 30 in the wholesale market Monex the Colon has registered a considerable devaluation against the U.S.
The Basic Passive Rate increased from 5.75% to 5.80%, while the Effective Interest Rate in Dollars increased from 2.21% to 2.33%.
The Central Bank of Costa Rica announced today that after recording a decline last week, the Basic Passive Rate increased 0.05%, and the level at which it will remain until next Wednesday, October 31 is 5.80%. [GRAFICA caption="Click to interact with graphic"]
The Passive Basic Rate decreased from 5.80% to 5.75%, while the Effective Rate in Dollars also decreased, from 2.43% to 2.21%.
On Wednesday afternoon, October 18th, the Central Bank of Costa Rica published that after not recording a movement in the previous week, the Basic Passive Rate decreased by 0.05%, and will remain at 5.75% until next Wednesday, October 25th. [GRAFICA caption="Click to interact with the graph"]
During this year, the Central Bank of Costa Rica has had to spend $1.1 billion of its reserves to participate in the exchange market and counteract the upward trend in the dollar price with respect to the Colon.
According to figures from the Central Bank of Costa Rica (BCCR), from August 17 to October 12 the exchange rate in the wholesale market Monex has been increasing, going from ¢568.35 to ¢595.46 per dollar, which is equivalent to a depreciation of 4.76%. [GRAFICA caption="Click to interact with the graph"]
The Costa Rican currency continues to depreciate, and the exchange rate in some Banks was already 600 Colones and more per dollar.
The upward trend of the exchange rate in Costa Rica has been observed in recent days. The Central Bank estimates that between September 27 and October 11, the exchange rate in the wholesale market Monex reported a clear upward trend, which is reflected in the increase from ¢570.75 to ¢597.43 per dollar, equivalent to a depreciation of 4.67%. [GRAFICA caption="Click to interact with graphic"]
The Effective Rate in Dollars increased from 2.40% to 2.43%, while the Basic Passive Rate continued for the second week at 5.8%.
The Central Bank of Costa Rica announced on Wednesday, October 10th that after the 0.10% decrease in the previous week, the Basic Passive Rate did not change and will be stable at 5.80% until next Wednesday, October 17th.
The basic passive rate is an average of the collection rates in Colones of the financial entities in terms of 150 to 210 days.
The exchange rate in the wholesale market Monex reported a clear upward trend during the first four days of the week in Costa Rica, increasing from ¢589.49 to almost ¢600 per dollar.
The Costa Rican currency depreciation against the U.S. dollar has been increasing in recent weeks, mainly due to the uncertainty over the fiscal situation and the greater perception of risk by investors and consumers, even though the tax reform law has already been approved in the first debate. The new law's future depends on the Constitutional Chamber, which must give its approval before being discussed and eventually approved in the second debate. See: "Tax reform: Partial Solution." [GRAFICA caption="Click to interact with the graphic"]
The impact of the strike, the uncertainty of the fiscal situation and the increased risk perception by investors and consumers, explain much of the depreciation that the Colon is suffering against the dollar in Costa Rica.
Figures from the Central Bank of Costa Rica (BCCR) suggest that between September 27th and October 5th the exchange rate in the wholesale market Monex registered a significant upward trend, which is reflected in the increase from ¢570.75 to ¢591.25 per dollar, equivalent to a depreciation of 3.59%.
The Effective Rate in Dollars increased from 2.32% to 2.40%, while the Basic Passive Rate decreased from 5.9% to 5.8%.
The Central Bank of Costa Rica published on Wednesday afternoon, October 3rd that after the increase of 0.15% of the previous week, the Basic Passive Rate reported a reduction of 0.10% and will remain at 5.80% until next Wednesday, October 10th.
The Passive Base Rate went up from 5.75% to 5.9%, while the Effective Rate in Dollars rose from 2.23% to 2.32%.
The Central Bank of Costa Rica published on Wednesday, news that after recording a decline last week, the Passive Base Rate rose by 0.15%, and the level at which it will remain until next Wednesday, October 4 is 5.90 %.[GRAFICA caption = "Click to interact with graphs"]
Even though the Central Bank of Costa Rica intervened yesterday selling $31 million in the foreign exchange market, at the end of the day the exchange rate in the Monex market stood at ¢585.8 per dollar.
According to figures from the Central Bank of Costa Rica, between September 25 and 26 the weighted average exchange rate in Monex rose from ¢579.54 to ¢581.76.This depreciation came a day after the government announced that with a "loan" of $866 million from the Central Bank, it would pay part of its current obligations for the last quarter of the year.See: "Clutching at Straws" in Costa Rica".
Since the beginning of the year Banco de Guatemala has intervened in the foreign exchange market buying foreign currency in order to curb appreciation of the local currency against the dollar, but in recent weeks it has been selling currencies in order to minimize depreciation.
In recent weeks the exchange rate of the Quetzal against the US dollar has been trending upwards, which has forced the Bank of Guatemala (Banguat) to sell foreign currency in the foreign exchange market.So far this year, up until September 24, it has had to intervene selling $402 million worth of foreign currency.
The Basic Passive Rate fell from 5.95% to 5.85%, while the Effective Rate in Dollars increased from 2.39% to 2.42%.
The Central Bank of Costa Rica published, on the afternoon of Wednesday, September 5, news that the Passive Base Rate fell, this week by 0.10% and the level at which it will remain until next Wednesday September 12 is 5.85%.
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.