Costa Rica moves to free-floating currency
Costa Rica announced that it would remove the country’s nine-year-old currency band system in favor of a floating exchange against the U.S. dollar, according to a statement from the Central Bank (BCCR) Saturday.
The BCCR had not taken any measures to adjust the value of the colón, Costa Rica’s currency, outside the band since Dec. 12, 2013, arguing that the currency had been in a “de facto” float since then.
On Oct. 17, 2006, the BCCR announced that it would implement the currency band, which established a floor and ceiling price between which the colón could float before the Central Bank would take steps to adjust its value. The band system was implemented as a way to gradually move the country from a fixed exchange to a floating one.
The colón has depreciated roughly 8 percent against the U.S. dollar since February 2014, selling at 543 on Saturday, according to Monex. The BCCR said that Costa Rica had more than $7.3 billion in reserves.
You may be interested
Precision medical equipment remains Costa Rica’s top exportAlejandro Zúñiga - June 22, 2021
Costa Rica tallied more than $5.77 billion in exports over the first five months of 2021, a 23% increase over…
Canada to begin easing border measures in JulyAlejandro Zúñiga - June 22, 2021
Canada will ease some border measures as part of a phased reopening that begins next month, the country's government announced…
Costa Rica pauses appointment of Ambassador to NicaraguaAlejandro Zúñiga - June 22, 2021
The Costa Rican government on Monday announced it has paused the appointment of its Ambassador to Nicaragua due to "the…