June 10th, 2014 (InsideCostaRica.com) Costa Rica’s Constitutional Court (Sala IV) has unanimously rejected an appeal filed by a private citizen that aimed to lift the Central Bank’s claim to secrecy of meeting minutes of the Bank’s board of directors.
The appeal was in regards to the Central Bank’s interventions in the currency market, the decision making process of which is kept secret by the Central Bank.
Former lawmaker, Patricia Pérez Hegg had also filed an appeal in the matter in April, and has on a number of occasions requested information on what the Bank’s budget is for interventions in the currency market and the criteria used to determine the need for an intervention, amongst other information, all of which have been denied.
In its decision, the Constitutional Court agreed with the Central Bank that revealing such information increases the potential for speculation by large players in the foreign exchange market.
Luis Loria of Strategic Consulting disagrees with the decision, and said the decision by the Constitutional Court will allow the Central Bank to intervene in the currency market arbitrarily.
“As a result [of the decision], the Central Bank is able to transfer wealth from one sector of society to another without accountability to anyone,” Loria said.
The Central Bank has argued that disclosing such information is irrelevant to the public good.
The Central Bank made a number of interventions in the currency market earlier this year in an attempt to control a weakening colon and strengthening dollar.
The appeal filed by Pérez remains pending.