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Saturday, March 15, 2025

Costa Rica Exchange Rate Hits Historic Low, Central Bank Steps In

The exchange rate in Costa Rica has plummeted to a historic low, with the dollar reaching ₡499.90 on Thursday, March 13, in the Foreign Exchange Market (MONEX)—a level not seen since May 7, 2008, when it stood at ₡497.20. The market saw $29.52 million traded across 266 transactions, with the dollar’s selling price ranging from a minimum of ₡499.31 to a maximum of ₡500.70.

The Central Bank of Costa Rica (BCCR) acquired $17 million of the total to meet the needs of the Non-Banking Public Sector (SPNB), a role mandated by law. However, the International Monetary Fund (IMF) recently urged the BCCR to phase out this function in its latest technical report on Costa Rica’s economy.

At public bank counters, the dollar’s selling price ranges between ₡504 and ₡507, with purchase prices between ₡490 and ₡493. Private banks offer selling prices from ₡506 to ₡513 and purchase prices from ₡489 to ₡493. The BCCR notes that the colón has steadily appreciated throughout early 2025.

Melvin Garita, Deputy General Manager for Operations at Banco Nacional, highlighted the Central Bank’s active role in managing the currency. “By purchasing dollars, the BCCR has curbed further appreciation. This benefits imports by lowering costs but challenges exporters with shrinking profit margins,” he said.

Economist Gerardo Corrales of Economía Hoy pointed to income tax payments as a key driver of the drop. “Multinational companies bring in foreign funds to meet tax obligations, flooding the market with dollars,” he explained. Meanwhile, Pablo González, an economic analyst at Grupo Financiero Mercado de Valores, offered a forecast: “Downward pressures will persist in the first quarter, followed by upward shifts in the second and third quarters, with appreciation expected by year-end. Volatility and seasonal fluctuations will remain.”

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