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Central Bank Reference Rate
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BUY ₡ 581.10 SELL ₡ 590.61 |
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Not just a job: More than 1,000 journalists face off Sunday in the Carrera de la Prensa, a 10 kilometer race for journalists in San José's Sabana Este. |
Keely Kernan | Tico Times
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Tico fighting champs: From left, Costa Rica's Ludwing Salazar, Alejandro Solano and Alejandro Villalobos sweep the international mixed martial arts competition Saturday at the Villa Olímpica in the southern San José district of Desamparados. |
Mike McDonald | Tico Times |
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| Costa Rican president regrets Cuban trade embargo extension |
| Costa Rican President Oscar Arias has expressed dismay over the United States' move to extend its nearly 50-year-old trade embargo against Cuba one more year. |
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| Panama to back outcome of Honduran elections |
Easing away from the rest of the region's policy of maintaining pressure on Honduras, Panama's top diplomat has said his government will recognize whomever is voted into Honduras' presidency in the November elections. |
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| Costa Rica unbeatable in weekend fight competition |
Costa Rican fighters snatched all three international mixed martial arts (MMA) titles that were up for grabs in stunning style at Fite Nite's Night of Champions on Saturday at the Villa Olímpica in the southern San José district of Desamparados. |
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| Colón-dollar exchange rate sees high fluctuations |
The exchange rate in Costa Rica saw significant fluctuations at the end of the week, reaching a peak buy value of ₡ 585.90 per U.S. dollar on Thursday before falling to ₡ 581.10 per dollar on Saturday. The ₡ 585.90 buy value and ₡ 595.37 sell value were the highs for the exchange rate this year, which continues to push toward the ₡ 600/$1 milestone. |
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Inflation Is a Chronic
Disease in Costa Rica |
Inflation is an insidious thing, like a thief in the night who sneaks into closets and picks the pockets of our pants as they sleep innocently on their hangers. |
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Costa Rican president regrets
Cuban trade embargo extension |
By Chrissie Long
Tico Times Staff | clong@ticotimes.net
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Costa Rican President Oscar Arias has expressed dismay over the United States' move to extend its nearly 50-year-old trade embargo against Cuba one more year.
“I have not been in agreement with this embargo for some time,” Arias said on Friday, days before he heads to New York City to participate in a climate change forum and nuclear arms debate.
Just as the region was coming closer to reconciling a nearly half-century standoff with Cuba, U.S. President Barack Obama extended sanctions against the island last week.
While Obama gave indications in April that Washington is moving to bridge relations with Cuba – including allowing Cuban Americans to travel and send remittances to their homeland – he issued a memorandum Sept. 14 stating his intention to pursue the “continuation for one year of the exercise” with respect to Cuba, citing the “the national interest of the United States.” The Trading With the Enemy Act against Cuba, which was originally signed in 1963, was scheduled to expire Sept. 14, 2009.
“It's not a new position, but it's not the most appropriate one,” said Arias, who became one of the latest leaders in the region to renew diplomatic ties with Cuba in March. He said isolation has locked Cuba in the past: “It's always been used as an excuse for Cuba not to realize a change.”
Within the last year, Cuba gradually has become more accepted in the region as the Organization of American States offered the island membership and more countries renewed diplomatic ties (including El Salvador and Costa Rica), leaving the United States as the only country that has yet to normalize relations.
For Arias, “If it's only for one year, it leaves hope … that they will not extend the embargo. And that would be a good thing.” |
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| Panama to back outcome of Honduran elections |
Easing away from the rest of the region's policy of maintaining pressure on Honduras, Panama's top diplomat has said his government will recognize whomever is voted into Honduras' presidency in the November elections.
"We see the democratic elections as a departure from the current situation, as long as they are held in a transparent manner and they are part of the national dialog," said Juan Carlos Varela, Panama's vice president and foreign minister.
The Panmanian vote of confidence for Honduras' upcoming elections came as a departure from firm stances held by the international community. In a recent announcement to slash millions in aid to Honduras, the U.S. State Department said that it will not recognize the result of the Honduran elections slated for November as long as the terms included in a Costa Rica-brokered accord are not met (TT Daily News, Sept. 4).
Among its primary, and most contentious, points, the San José Agreement – drafted by Costa Rican President Oscar Arias after four days of intense negotiations in his home – calls for an amnesty and reinstatement of deposed President Manuel Zelaya. Only one of the country's leading presidential candidates, César Ham, of the Democratic Unification Party, has said he would support the terms of the San José Agreement if elected (TT Daily News, Sept. 17).
In a televised interview Sunday with "Al Punto," a program on Hispanic TV channel Univision, U.S. President Barack Obama avoided saying whether his administration would flatly refuse to recognize the elected leader after Honduras' Nov. 29 vote. However, he reiterated that Arias' proposal will bring legitimacy to the elections.
The government of recently elected Panamanian President Ricardo Martinelli, a conservative, has offered to work as a mediator in the Honduran crisis, which has resulted in a standoff following Zelaya's June 28 ouster. Martinelli's administration remains in contact with Honduras' de facto President Roberto Micheletti.
Martinelli, who took office July 1, is due to leave Monday with his foreign minister and other members of his cabinet for New York to participate in the meeting of the United Nations General Assembly from Sept. 23 to 30.
Varela added that "several countries" – without specifying – have felt "that in some way they see the elections as an exit from the current crisis" in Honduras, and that Panama will convey its backing of the final election results in meetings with U.S. Secretary of State Hillary Clinton, Colombian President Alvaro Uribe and Chile's Michelle Bachelet, among other top officials. |
–Tico Times and EFE |
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| Costa Rica unbeatable in weekend fight competition |
By Mike McDonald
Tico Times Staff | mmcdonald@ticotimes.net
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Costa Rican fighters snatched all three international mixed martial arts (MMA) titles that were up for grabs in stunning style at Fite Nite's Night of Champions on Saturday at the Villa Olímpica in the southern San José district of Desamparados.
Of the event's 13 fights, which included boxing and MMA – a full contact combat sport that allows a variety of martial arts and other fighting techniques – the final three gave six Latin American fighters a shot at hoisting the prized gold Fite Nite belt above their head and wearing it proudly out of the ring.
In the first of the night's championship fights, Costa Rica's Ludwing Salazar squared off against Elton Brown from Panama in the 170 pound weight class. Brown dominated the first round with strong upper-body clinches and ferocious fist assaults.
But in round two, Salazar kept the Panamanian on the defensive. The Tico forced Brown into a corner and delivered several knockout blows until the referee called the match. Salazar sealed the welterweight title and set the pace for the remaining two championship fights.
Alejandro Villalobos of Costa Rica and Mattias Vásquez of Chile represented the 145 pound weight class in the second of the night's championship fights.
Vázquez controlled much of the fight with vicious punches, but was unable to deliver the knock out as Villalobos got tied up in the ropes and fell out of the ring.
Both returned to the center of the ring, but this time it was Villalobos on the attack. The Tico pulled Vázquez to the ground and punched his way to a second round victory and a Fite Nite featherweight championship.
But it was Costa Rican and crowd favorite Alejandro “Mandarina” Solano, who boasts an impressive 13-4 record, who sealed the clean championship sweep for Costa Rica.
Against Argentine fighter Fernando “Pitbull” Martínez, Solano never let up. In the second exchange of punches, Solano forced Martínez from one side of the ring to the other until the Argentine was caught against the ropes. Solano kept striking until the referee stopped the match, securing a lightweight title for himself and his country.
“I love this sport,” Solano said at the end of the match. “I appreciate all the fighters for doing what they do, but it feels great to represent Costa Rica with this belt.”
Once the final bell rang, Solano ran to his corner and leapt out of the ring into the arms of his team. Chants of “ Costa Rica ” rang out from the stands as the Tico's posted a perfect 3-0 record in championship fighting. |
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| Colón-dollar exchange rate sees high fluctuations |
By Adam Williams
Tico Times Staff | awilliams@ticotimes.net
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The exchange rate in Costa Rica saw significant fluctuations at the end of the week, reaching a peak buy value of ₡ 585.90 per U.S. dollar on Thursday before falling to ₡ 581.10 per dollar on Saturday. The ₡ 585.90 buy value and ₡ 595.37 sell value were the highs for the exchange rate this year, which continues to push toward the ₡ 600/$1 milestone.
The continued increase in the exchange rate is driven by the amount of U.S. dollars in Costa Rican economy and businesses' payment of loans and bills in dollars versus colones, according to Aldesa, a San José-based financial consulting firm.
“The exchange rate is continuing to feel pressure because of the amount of U.S. dollars in use in the economy,” said Eric Vargas, Aldesa's investment strategy director. “The Central Bank is attempting to decrease the amount of U.S. dollars by selling them for colones. However, as companies prepare to pay their bills at the end of September, they will most likely pay them in dollars. This means the exchange rate could increase near the end of the month.”
Exchange rate fluctuations are expected at the middle and end of each month, which is when companies pay employees and debts, thus increasing the circulation of colones and dollars.
Though the Central Bank continues to attempt to intervene to slow the increase of the exchange rate by selling dollars for colons, according to Aldesa, companies' payment of bills in dollars at the end of the month could drive the exchange rate higher. Thus far in September, the buy value for the exchange rate has decreased from ₡ 584 colones/$1 to ₡ 581/$1.
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Inflation Is a Chronic Disease in Costa Rica |
By Rod Hughes
editorial@ticotimes.net |
Inflation is an insidious thing, like a thief in the night who sneaks into closets and picks the pockets of our pants as they sleep innocently on their hangers.
Since the economic crisis of the early 1980s, inflation has been a fact of life in this country – like earthquakes, cloudbursts and litter on the streets. Now this newspaper has discovered that the colón is weakening and may reach ¢ 600 per dollar by the end of the year. Taking into account that the dollar is hardly Arnold Schwarzenegger on the world money exchange, this is not good news, friends!
This may be due to stagflation, a phenomenon that popped up during the administration of former United States President Jimmy Carter. The situation is this: There's less money out there to buy goods, but prices still go up. This seems to defy all logic, but as nearly as I can understand, it's much like burping when you're trying to swallow. It's not fatal, but it's extremely uncomfortable.
Nowhere is this economic heartburn more obvious than in construction. Despite having many large projects on hold in this country, the local prices of building materials continue to rise. Although my wife denies this, it seems to me that the recent redoing of our septic tank drain field cost more than putting a second floor on our house 12 years ago. This even applies to the river stones used to fill the drain field. Now, mind you, these are very elegant rocks – round and delicate dove-gray stones ranging in size from a baby's cranium to a Texas watermelon. Seems a pity to cover them up, but the neighbors might complain if we left the trench open as a tourist attraction.
And one must take into consideration that the constructor of our second floor was not one of those high-priced, highly recommended firms. You know, one with real engineers who know what they are doing. I don't know where my wife found him, but all she could tell me later about contracting him was, “Well, it seemed like a good idea at the time.”
This guy was – now let us be charitable here – a blithering idiot. Although he had only to perforate the wall between the bathroom and the hallway, he planned (before I threw a truly monumental tantrum) to put the bathroom door in the laundry room. Even before this near-disaster, it was clear that his mind – if he had one – was not on his work. He made it clear at the outset that he did not install doors and didn't do windows. Although this seemed strange(something like a secretary applicant not knowing any Microsoft programs), I unwisely let it go.
We ended up spending a king's ransom after he finished because, although he installed a new electrical system, almost nothing in the great spaghetti of wires in the attic seemed to be connected with anything else. The outlets for the computer connections were mere decorations. When we used the lower floor shower heater, the breaker box would cut power if the refrigerator turned on. Not to speak of the freezing blast of water on our shivering, unsuspecting bodies. Hiring a real electrician to sort things out was the only option. He may never be the same again, but don't ask me to pay for his visits to the psychiatrist…
I was never worried about earthquakes until the second floor went up. But now when someone climbs the stairs, the whole second floor shakes. Even our housecat will raise a quiver when racing up the steps! And there were so many leaks that the gypsum came down on the lower porch and the balcony.
But, I digress …
Do you remember when the colón was divided into céntimos? They were tiny little coins about which I once complained that, while counting them out to make the fare in the darkness of a bus, I often inhaled several. I would find more when I cleaned my fingernails. But, before inflation hit in the early '80s, they were worth something. Then the street exchange rate of the colón skyrocketed. The handwriting on the wall came when mechanics began to drill holes in the coins because they were cheaper than buying washers to put on bolts. I'm not making this up—it happened!
The five-colón bank note changed overnight from the world's most beautiful currency into a collector's item valueless at the local bank. Businesses with dollar debts folded up their tents and stole silently away into the night like bankrupt circuses.
Today's colón is yesterday's céntimo. The one- and two-colón coins are gone, along with the 100- and 500-colón bills, joining the dinosaurs. A ₡500 coin is small change although, within the memory of us longtime residents, that same amount would have paid a family's bus fare to Guanacaste province..
Once I contemplated buying six hectares of land in Guanacaste for ₡18,000. Today you don't even dare suggest writing a check for that amount for fear that the recipient would rupture something in his hysterics.
Longtime Tico Times staffer Rod Hughes has a few river rocks left over which he will let go of for a mere ₡2.1 million, taking inflation between now and your phone call into account.
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