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Monday, May 20, 2024

Experts: Costa Rican exchange rate to remain near ₡500 through year’s end

As the third quarter draws to an end and mandatory year-end bonuses approach, Costa Rica’s exchange rate is expected to remain near the ₡500 to the dollar mark for the rest of the year, experts said.

Last August, Costa Rica’s Central Bank purchased some $70 million to keep the exchange rate from falling below the lower band limit of ₡500.

Economic analyst Hairo Rodríguez said in an interview with Radio Reloj that “many companies will start exchanging dollars into colones to meet their tax obligations and to prepare for the payment of year-end bonuses.”  That means that dollars “will saturate the market, and this will force the exchange rate to remain in downward trend,” he added.

In the first week of September, a report from Aldesa Securities Group for the weekly El Financiero, said the Central Bank bought another $19 million for the same reason.

Despite this, a survey of experts by the Central Bank this month predicts a colón devaluation ranging from 1.5-1.9 percent for the next three to six months.


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