During 2018, family remittances to Central American countries and the Dominican Republic totaled $28.670 million, of which $9.288 million went to Guatemala.
In 2018, family remittances to Central America and the Dominican Republic (CARD) grew 11%, showing a slight slowdown with respect to what was observed in 2017 (12.0%). This slight slowdown was observed in all countries except Honduras, explained the Economic Commission for Latin America (ECLAC).
In an unstable exchange market, lack of transparency in the rules on intervention by the Central Bank of Costa Rica increases uncertainty and drives investors towards the safest currency.
EDITORIAL
The rise in the price of the dollar in Costa Rica is a negative factor for some sectors and positive for others, but generally negative for the economy, because it distorts companies' plans, diminishing their competitiveness, and because it increases market players' willingness to speculate.
Some companies can become richer than others overnight, depending on decisions made by a few public officials.
Editorial
An article in Elfinancierocr.com reports on the positive effects of the devaluation of the national currency of Costa Rica, the-Colón, agains the dollar, for exporters in the country.
The causes of the devaluation were mainly external, but were catalyzed by decisions made by public officials, the Central Bank, whose missive it is to defend the value of the national currency, because this supposedly contributes to the economy.
The Salvadoran economist Manuel Hinds discussed in Costa Rica the pros and cons of dollarization, using the example of El Salvador and Panama.
The Elsalvador.com reported that "many government economists advocate keeping their local currency because they believe that inflation will remain low, but Hinds explained that the opposite happens. In the region, El Salvador, and Panama, which are dollarized, have the lowest inflation rates while countries like Argentina and Venezuela have an inflation rate of more than two digits (25 and 10% respectively) while last year, inflation in El Salvador was only 0.8%. "
In March the balance of new bank loans reached $34.339 billion, which is $4.729 billion more than earned in the same period of 2012, when the total was $29.61 billion.
Figures from the Superintendency of Banks in Panama (SBP), reveal that most of the growth in lending balances is in the private sector, with $4.3329 billion, while the public sector only received $396 million.
President Martinelli told German Chancellor Angela Merkel that Panama is exploring ways for the Euro to become legal tender, alongside the U.S. dollar.
International press has reported that the Panamanian President during a joint news conference with Merkel in Berlin, said: "In Panama, the currency in free circulation is the U.S. dollar and I said to the Chancellor that we are studying ways for the euro to become another legal currency and be accepted in the Panamanian market. "
There has been more than a century without salaries, offices and staff travel expenses, while politicians have been forced to control costs, having no one else to cover the deficit by printing money.
Economist Quijano Diego Duran celebrates the anniversary with an article in Prensa.com, outlining the advantages Panama has had over other countries in the area, from lacking of a central bank.
Good news for importers and store owners, bad news for exporters. Governments cannot afford to ignore this problem.
The causes of the appreciation in the value of Latin American currencies relative to the United States dollar are varied. The main reason is the current weakness of the US economy and the low expectations of a quick recovery. In addition, Central and South American economies are doing well, boosted by high commodity prices and the way their financial systems withstood the last crisis.
The recent increase in the value of the Costa Rican colon versus the dollar is worrisome, not only because there are no clear reasons to explain it, but also because it would be hard to contain it without causing greater problems.
In the past weeks, and without apparent reason, the price of the U.S. dollar in Costa Rica dropped considerably.
Last week we surveyed some financial operators as to why these movements where occurring, the general answer being: “we don’t know”.
The financial collapse in the US will, sooner or later, cause a strong drop in the dollar, Carlos Dias warned.
"I don't believe that there will be a total collapse, that will only happen if China, Japan and Saudi Arabia stop buying US Treasury bonds; but if we are projecting that in December the Euro will be worth $1.70, that devaluation will have a very strong inflationary effect here," Dias said.
A barrel of Brent petroleum has passed the 146-dollar mark and could rise even higher if the European Central Bank raises interest rates.
The latest price increase followed an announcement by the United States government that its oil inventories have fallen more than expected.
World petroleum prices have doubled in the past year.
The combination of the weak dollar, high demand for crudd and fears over a possible interruption of supply in the Middle East and Africa are the reasons for this most recent round of price increases.