• Costa Rica Coffee Guide

Central Bank Searching A Happy Money Medium

May 9, 2008

For the second time this year, the Central Bank escaped binging on dollars in the exchange market, according to information released by the local finance company Aldesa.

The bank has been forced most weeks to absorb dollars, preventing the colón from bouncing below the established lower exchange limit. A flood of dollars into the Costa Rican market pushes up the value of the colón, something the Central Bank tries to control by purchasing those dollars and issuing colones.

That action, however, tends to increase inflation – something the Central Bank has committed to controlling for 2008 – fueling speculation that the bank will choose to lower the bottom limit on the exchange rate instead. Inflation was 3.12 percent in the first quarter.

In the first five months this year, the Central Bank has purchased $1 billion off the exchange market. That pace would mark a steep increase over 2007, when it bought roughly $1.4 billion all year.

A major national bank raised the amount at which it sells dollars on Wednesday by roughly ¢5, according to the daily La Nación.

Banco Nacional raised its selling rate to ¢501, while its buying rate was reset at ¢495 from ¢490.25. The bank did not provide a reason for the move.

 

You may be interested

Commemorative stamps mark Costa Rica’s path to 200 years
Costa Rica
1 views
Costa Rica
1 views

Commemorative stamps mark Costa Rica’s path to 200 years

The Tico Times - April 21, 2021

Costa Rica is celebrating its bicentennial this year, and the country is marking the occasion with, among other things, a…

Costa Rica coronavirus data for Tuesday, April 20
Costa Rica
12 views
Costa Rica
12 views

Costa Rica coronavirus data for Tuesday, April 20

The Tico Times - April 20, 2021

Costa Rica registered: 1,069 new cases of Covid-19 on Wednesday, April 14; 1,121 on Thursday, April 15; 1,044 on Friday,…

Costa Rica shines in World Press Freedom Index
Costa Rica
11 views
Costa Rica
11 views

Costa Rica shines in World Press Freedom Index

AFP - April 20, 2021

The annual report by Reporters Without Borders (RSF) said Tuesday that journalism was at least partly blocked in nearly three-quarters…