The exchange rate between the U.S. dollar and Costa Rica’s colón rose to its highest mark of the year Friday, as the buy value hit ₡515 with a sell value of ₡525, according to the Central Bank of Costa Rica (BCCR). The value of the colón depreciated ₡7 against the U.S. dollar in the past week and ₡16 since Sept. 20.
In an interview with The Tico Times in September, Central Bank President Rodrigo Bolaños explained the exchange rate hovered around ₡500 for most the year due an influx of investments made in colones for much of the year.
Bolaños said that recent international economic uncertainty could result in fluctuations in the exchange rate and interest rates. With increasing uncertainty in the U.S. and European financial markets, the exchange rate during the final three months of the year could see more erratic activity than the first nine months of the year.
A report from the San José-based financial consulting firm Aldesa accredited the recent devaluation of the colón to the increase in the demand of dollars for imports, reduced credit lines in the short-term as decided by the Central Bank, and the “expectation of economic agents in regards to the international volatility” that could reduce the amount of foreign currency entering Costa Rica.