The exchange rate increases again – Q COSTA RICA

QCOSTARICA – The dollar exchange rate rose again after falling on November 25th. The average value of the currency on the Monex market rose by 10.91 yen in 13 days, reaching 640.82 yen on Tuesday, December 7.

The arrival of foreign visitors is one of the main sources of dollars, however, it has yet to regain the levels it had before the pandemic. In the photo, the arrival in Limón of the first cruise of the 2021-2022 season. (Courtesy of the Municipality of Limón)

At the financial entity level, the currency traded between 642 and 647 for sale, ignoring the brokerage houses. The Banco de Costa Rica (BCR), for example, kept the sell rate at 646, at noon on Tuesday; the private bank BAC kept it at 645.

The increase comes at a time when foreign exchange is generally plentiful; However, Daniel Ortiz, director of the consulting firm Cefsa, cited several factors that could explain the increase: one could be linked to the payment of a bond of around 350 million dollars that the government will pay next Friday, which implies greater demand for the currency.

According to Ortiz, statistics released by the Central Bank show that the government has the resources to pay this debt, but in colones, and the instrument is denominated in dollars. As of December 2, the government had US $ 40 million in its central bank dollar accounts and yen 305.76 billion in its colony accounts.

“So far we have not bought any foreign currency, so this is not the reason for the increase in the dollar price, even during this week we will be disbursing loans and also for tomorrow (December 8 ) we have a dollar auction, it will be from there, we will know with certainty the amount of dollars that we will buy through the Central Bank ”, said the Minister of Finance, Elian Villegas,

The government buys the foreign currency it needs from the Central Bank, which sells it from its reserves, and then the foreign exchange authority buys it from Monex, depending on market conditions.

Other reasons that pushed the dollar rate up are expectations of a change in the market exchange rate, the higher oil bill, the needs of the non-banking public system and the still gradual recovery in tourism.

In November, according to information published by the Central Bank, the expectation of a 12-month exchange rate variation in market negotiations was 5.24%; close to the percentage recorded since last August.

According to information provided by the Central Bank, Costa Rica paid in October 137.6 million US dollars for the import of fuels, 87.5% more than what it paid in October 2020.

In the private market, the foreign exchange surplus was maintained last week. Between November 30 and December 3, financial entities bought $ 527.4 million from the public and sold $ 491 million, which generated a surplus of nearly $ 36 million.

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