Costa Rica Coffee Guide

Costa Rica to regulate short-term currency investments from abroad

January 16, 2013

Vice President Luis Liberman on Tuesday night said administration officials next week would send lawmakers – who return Monday from vacation – a bill to limit the inflow of short-term capital investments that have been detected in recent months and are taking advantage of Costa Rica’s attractive interest rates in colones.

According to officials, since October, Central Bank authorities have detected large amounts of U.S. dollars entering the country and targeting short-term investments after being exchanged into colones. Interest rates in colones are much higher than dollar rates in their home countries.

The bill seeks to highly tax those investments to discourage the activity.

“Short-term capital investments increase the amount of cash in circulation, causing a drop in the exchange rate, which increases the number of loan requests and interest rates at banks,” the vice president said.

According to Liberman, that could destabilize the country’s economy.

You may be interested

Costa Rica coronavirus updates for Tuesday, September 29
Costa Rica
5573 views
Costa Rica
5573 views

Costa Rica coronavirus updates for Tuesday, September 29

Alejandro Zúñiga - September 29, 2020

Costa Rica announced 19 new coronavirus-related deaths over the last day for a total of 880, according to official data…

Costa Rica says coronavirus measures continue in October
Costa Rica
21083 views
Costa Rica
21083 views

Costa Rica says coronavirus measures continue in October

Alejandro Zúñiga - September 29, 2020

President Carlos Alvarado and the National Emergency Commission (CNE) on Tuesday  announced Costa Rica's coronavirus measures will continue in October. The…

These are the requirements to enter Costa Rica as a tourist
Costa Rica
2334 views
Costa Rica
2334 views

These are the requirements to enter Costa Rica as a tourist

Alejandro Zúñiga - September 29, 2020

Costa Rica is currently welcoming tourists from select countries and U.S. states. Due to the coronavirus pandemic, Costa Rica has…