Dollar Exchange Rate
Drops Below ¢500
Shopping around for the
best exchange rate
during the holiday
season is a must as
banks post differing
rates of exchange of the
U.S. dollar and the
Costa Rican colón.
At the Banco Nacional (BN)
and Citibank, the
exchange rate was ¢499
to us$1, while other
banks were above the
¢500 mark.
This is the first time
since January 2006 that
the exchange rate for
the colon has been below
the ¢500 mark.
The band for the
exchange rate at the
banks had reached a high
of ¢512 when it dropped
to ¢505 on November 22
as the Banco Central de
Costa Rica (BCCR)
adjusted the limits.
During the past week the
sell exchange rate
dropped ¢1 colon as the
influx of more tourists
and investments
increased the number of
dollars in the market.
With more dollars
circulating there is
greater pressure to
devaluate the currency
against the colón.
According to Guillermo
Quesada, general manager
of Bancrédito, more
people are changing
their dollars for the
colón or euros.
The BCCR participates in
the wholesale exchange
market known as Monex,
buying up dollars to
avoid that the currency
falls below established
parameters set out on
November 22.
Between November 23 and
December 20, the BCCR
has purchases us$639
million dollars. This
week (Monday to Friday)
alone the BCCR purchased
us$186 million dollars.
For Carlos Fernández,
general manager of the
Banco de Costa Rica (BCR),
the situation is
complicated and
considers that higher
interest rates in dollar
loans can be foreseen.
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