Costa Rica moves to free-floating currency

January 31, 2015

Costa Rica announced that it would remove the country’s nine-year-old currency band system in favor of a floating exchange against the U.S. dollar, according to a statement from the Central Bank (BCCR) Saturday.

The BCCR had not taken any measures to adjust the value of the colón, Costa Rica’s currency, outside the band since Dec. 12, 2013, arguing that the currency had been in a “de facto” float since then.

On Oct. 17, 2006, the BCCR announced that it would implement the currency band, which established a floor and ceiling price between which the colón could float before the Central Bank would take steps to adjust its value. The band system was implemented as a way to gradually move the country from a fixed exchange to a floating one.

The colón has depreciated roughly 8 percent against the U.S. dollar since February 2014, selling at 543 on Saturday, according to Monex. The BCCR said that Costa Rica had more than $7.3 billion in reserves.

You may be interested

5 questions for a Quepos theater company
Uncategorized
899 views
Uncategorized
899 views

5 questions for a Quepos theater company

Elizabeth Lang - November 19, 2017

Quepos, a town on Costa Rica's Pacific coast and the gateway to the renowned Manuel Antonio National Park, has experienced…

Multipurpose malinche, an attractive and useful ornamental
Home Gardening
1600 views
Home Gardening
1600 views

Multipurpose malinche, an attractive and useful ornamental

Ed Bernhardt - November 18, 2017

Here’s another attractive ornamental that’s a favorite Costa Rican backyard patio shrub. You’ll find malinche (Caesalpinia pulcherrima) growing in just…

Costa Rican Friday Happy Hour #3: ‘El Otro Gol’
It's the weekend!
5096 views
It's the weekend!
5096 views

Costa Rican Friday Happy Hour #3: ‘El Otro Gol’

Katherine Stanley - November 17, 2017

Maybe it was this morning's story on what to expect at the World Cup 2018, now that the field of…