The Central Bank intervened with $45 million in MONEX to contain the rise in the exchange rate

QCOSTARICA – Banco Central de Costa Rica (BCCR) – Central Bank of Costa Rica – intervened for the fourth consecutive day in the foreign exchange market (MONEX) to contain the rise in the dollar exchange rate and prevent it from overshooting 700¢ at commercial level. banks.

This Thursday’s intervention amounted to 45 million dollars, or 70 million dollars for the stabilization operations of the week.

In a single day, the Central Bank intervened more than in the whole of 2021, when stabilization operations accumulated to $35 million.

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A few days ago, President Rodrigo Chaves accused the government of Carlos Alvarado of having spent 2.3 billion US dollars in international reserves to intervene, but the Central Bank clarified that it had the necessary reserves.

Financial analysts said that the interventions contain the exchange rate, but will not generate a decrease in the current pressure and explained that the interventions reflect uncertainty in the markets.

According to the economist and director of FCS Capital, José Luis Arce, the current situation is the result of the fear of economic agents following “unfortunate comments” on the situation of the exchange rate and reserves of the BCCR and not is not the result of an additional situation of the external shock that the country has been facing for a few months.

“What is happening in the foreign exchange market are the real consequences of the unfortunate comments of certain analysts replied without thinking by the President of the Republic (Rodrigo Chaves). These comments have created uncertainty which has been reflected in the exchange windows, which have gone into deficit, since the Monday following the declarations (by the president), ”argued Arce in reference to the press conference, on May 22, in which Chaves accused Carlos Alvarado’s government of leaving the country with few international reserves at the Central Bank.

The sale of the dollar in commercial banks varies between ¢697 and ¢700.

The Central Bank benchmark for this Friday, June 3 is 689.61¢ to buy and 694.99¢ to sell.

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Here is a screenshot of exchange rates at commercial banks (public and private), as reported to the Central Bank.

BCCR screenshot of commercial bank exchange rates for this morning, June 3

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