February 6th, 2014 (InsideCostaRica.com) The dollar continued to make significant gains against a falling colon, gaining an additional ¢5.38 yesterday alone.
The latest gains puts at ¢22 – or 4.3% – the dollar’s gain against the colon since January 2nd .
In retail banks yesterday, prices ranged between ¢513 and ¢520, and sale prices ranged between ¢528 and ¢532.
This morning the Central Bank reference rate stood at ¢514.76 (buy) and ¢529.39 (sell).
Trend could continue
Costa Rica’s vice president, Luis Liberman said the government will not sell large amounts of US dollars into the currency market, at least for the next six months, when the current government leaves power.
In the past, the government has sold large sums of dollars into the market in order to meet the government’s own currency exchange needs – namely, it receives foreign loans in dollars and exchanges a significant amount of them to colons. Now, Liberman says the government will not be making any large foreign exchanges for the remainder of the current government. With less supply of government-sold dollars in the market, the dollar is likely to continue to gain ground against the colon, at least in the near term.