March 3rd, 2014 (InsideCostaRica.com) In an interview published today by the daily Diario Extra, the president of Costa Rica’s Central Bank, Rodrigo Bolaños indicated that the dollar would likely continue its gains against the colon in the short term.
“[The dollar] will probably keep going up, but it could later fall, so it is best to be cautious,” Bolaños said when asked about the dollar’s likely trend in the coming months.
Bolaños said that the dollar’s recent gains were positive for the export and tourism sectors, while also warning those who earn in colones against taking loans in dollars due to the current trend in the exchange rate.
Bolaños said that Central Bank would not act to prevent continued rises in the price of the dollar, and would only intervene in the exchange market to prevent extremes of intra-day volatility.
Bolaños also indicated that colon interest rates were likely to rise both because of the current trend of the exchange in addition to other factors.