Central Bank Does Not
Foresee Climb in
Exchange RateThe
Banco Central de Costa
Rica (BCCR) - Central
Bank - says it does not
foresee a strong climb
in the exchange rate in
the short term as some
financial institutions
fear.
The dollar spiralled
abruptly earlier this
month against the Costa
Rican colon when the
Banco Nacional (BN)
raised the exchange rate
by ¢5 colones overnight
and continued to climb
to its highest level
(¢527.82 for the buy)
before the Central Bank
intervened.
However, against the
vision of the BCCR, the
exchange rate could
continue to climb,
although slowly and
according to financial
experts, they are
advising caution to
anyone who is
considering obtaining a
loan in dollars.
"An exchange of ¢570
(the ceiling set by the
BCCR) is unlikely and is
way off balance", said
Francisco de Paula
Gutiérrez, president of
the BCCR.
While some experts
predict a rise in the
exchange rate, others
are predicting the level
to remain where it is,
saying that the
conditions that existed
at the beginning of the
month are not now
present and that the
market overreacted.
One thing that the
experts do agree on is
for consumers to
exercise prudence when
considering obtaining a
loan or investing.
In the opinion of Luis
Liberman, head of
Scotiabank in Costa
Rica, the exchange rate
will statibilize little
by little and that Costa
Ricans have not yet
adapted to the change.
On the other hand,
Liberman is predicting a
rise in interest rates
in the short term and is
cautioning consumers to
shop around for the best
rate, especially in
mortgages where
commitments are long
term. "One has to be
prudent, not to say that
people should not buy a
house, but to really
think of what to invest,
based on their ability
to pay and possible
salary increases", said
Liberman.
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