April 9th, 2014 (InsideCostaRica.com) President-elect Solis wants to lower the colon’s ‘upper band,’ or ceiling on the currency market to avoid volatility that has seen the colon lose 9% against the dollar in the last few months, he said.
Costa Rica’s colon currently trades in a band that is set by the Central Bank, which currently dictates a floor price (lower band) of ¢500 to $1, with a ceiling price (upper band) of ¢825 to $1.
“The first thing is to flatten the (trading) bands. That is fundamental,” President-Elect Luis Guillermo Solis told Reuters in an interview. “We want smaller bands to allow for less aggressive fluctuations.”
Helio Fallas, Solis’s running mate, gave more details. When asked whether he would like to see the band’s ceiling for the colon lowered to 600 from around 825, Fallas told Reuters: “Yes.”
“Right now, it’s incredibly high,” Fallas added.