The exchange rate of the Costa Rican colón against the dollar increased by ₡10 during the past month, according to official data from the Central Bank...
The Costa Rican currency, the colón, has been on a slow slide against the the U.S. dollar during the last several months but analysts say it’s unlikely to fall much farther.
The euro has already fallen to a 12-year low of $1.06, and should keep falling for at least another year. In fact, it shouldn't be long until the dollar is worth more.
President Luis Guillermo Solís told representatives from the Costa Rican Banking Association that Moody’s Investor Services' decision to drop Costa Rica’s investment rating to junk status was not a crisis and urged calm during a meeting Wednesday morning. As the public sector tries to hash out how its weakened standing will affect the budget, consumers may have to pay more for loans in dollars.
The Central Bank’s efforts to quell volatility in the Costa Rican currency seem to be working. But analysts note that there are bigger problems on the horizon for businesses.
