No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeNewsCosta Rica Currency Update: Tourism Dip Drives Dollar Surge

Costa Rica Currency Update: Tourism Dip Drives Dollar Surge

Costa Rica’s exchange rate has defied expectations, climbing steadily after months of stability near ¢500. Two weeks ago, the dollar traded at ¢500.16, but by Monday it reached ¢511.43—a daily rise not recently seen here. Economists warn this shift, driven by declining tourism and U.S. trade policies, could signal tougher times ahead for the colón.

The Central Bank of Costa Rica (BCCR) reported in early 2025 that the colón was appreciating, thanks to robust dollar inflows. Yet, recent Foreign Exchange Market (MONEX) trends suggest otherwise. Two factors stand out: the high tourism season’s end, with a reported 15% drop in visitors this December-February compared to last year, and a trade “shock” from new U.S. tariffs unveiled in March. These measures, possibly a 10% levy on Costa Rican exports, aim to keep capital in the U.S., Costa Rica’s top trading partner.

From March 26 to April 7, the rate rose daily, fueled by weaker dollar inflows from tourism and seasonal exports like pineapples and coffee. Luis Vargas, a researcher at the University of Costa Rica, called it a “slow-cooking” global shift, not a catastrophe, that will gradually depreciate the colón in real terms.

Analysts predict the rate will stabilize between ¢520 and ¢530 by year’s end, dismissing fears of a spike to ¢600 or ¢700. Economist Alberto Franco cautioned that sudden U.S. policy twists—like further tariff hikes—could disrupt this forecast. Meanwhile, the BCCR has stayed silent on countermeasures, despite past interventions like a $17 million dollar purchase in March to curb appreciation.

Businesses here in Costa Rica are feeling the pinch, with importers eyeing price hikes. As of now, no new rate data has emerged, but the trend underscores our country’s ongoing vulnerability to external pressures.

Trending Now

Costa Rica Hunts for Nicaraguan Hit Squad After Exile’s Assassination

Costa Rica’s Judicial Investigation Agency (OIJ) is investigating whether a hit squad tied to Nicaragua’s Ortega-Murillo regime is targeting exiled critics on its soil....

Retired Nicaraguan Army Captain Sentenced to 50 Years for Treason

A retired military officer was sentenced to 50 years in prison in Nicaragua for the crime of "treason against the homeland," his family denounced...

U.S. – Guatemala Security Pact Targets Crime and Helps Returning Migrants

U.S. Secretary of Homeland Security Kristi Noem signed a border security cooperation agreement with Guatemala on Thursday, which includes the use of drones and...

Costa Rica’s Pride March 2025 Defies Restrictions and Celebrates Diversity

A large crowd gathered in Paseo Colón, San José, to participate in the LGBTIQ+ Pride March 2025. It began at noon, as people marched...

Costa Rica’s Eyelash Viper Snake Is One of the Most Beautiful

There are at least 141 different species of snakes in Costa Rica. With that large number of species packed into such a tiny nation,...

Costa Rica’s Pride 2025 Closing Event Bans Minors, Sparks Outrage

Costa Rica’s Pride 2025 closing event, set for June 29 at San José’s Plaza de la Democracia, was thrown into controversy when the government...
spot_img
Costa Rica Tours
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica