Experts: Dollar Price Expected to Stabilize around ¢530 - Expat Community

Experts: Dollar Price Expected to Stabilize around ¢530

Dec 16, 2023 | Costa Rica, News & Articles | 0 comments

Downward pressures on the exchange rate would persist, albeit to a lesser extent.


( – The price of the dollar is expected to stabilize around ¢530, with continuing downward pressures on the exchange rate, although less significant, in the last two weeks of this year, according to economists consulted by This follows a trend of the exchange rate reaching its lowest values since 2015 in recent days.


For example, this Friday, it closed at ¢526 on Monex, marking the lowest point in the past 9 years.


Luis Vargas, an economist from the College of Economic Sciences of Costa Rica (CCECR), explained that predicting the behavior of the exchange rate has been challenging in recent months due to its high volatility in the global economy. Additionally, locally in December, there have been both upward and downward pressures on the currency.


“We are in a high-consumption period where dollars are needed for the payment of year-end bonuses. Many people opt to buy vehicles with loans in dollars, increasing demand and upward pressure. However, there has also been a recent significant influx of foreign currency into the national market with a loan that the country received. There is also a significant generation of foreign currency by the Costa Rican export sector, which has been very dynamic,” he said.


He explained that, in net terms, one could expect “a certain stability of the exchange rate around ¢530.”


Pablo González, an economic analyst from the Stock Market, pointed out that December is a month where a seasonality of dollar inflows into the national economy is marked, and this year is no exception. However, he emphasized that due to the characteristics of the exchange market throughout the year, this greater flow of foreign currency has been more pronounced on this occasion.


“At the Stock Market, we believe that in these last weeks of the year, downward pressures on the exchange rate will continue, although perhaps to a lesser extent in the second half. What has been observed until this week is mainly due to the payment of year-end obligations in colones (salary, bonus, school salary, taxes) by companies that have their income in dollars, as well as the flow of tourists entering the country for the high season and, in general, the economic dynamics that the country has presented in recent months,” he added.



González mentioned that with the dollar price currently so low, it is an opportune time to buy the currency and sell it when it increases, aiming to generate long-term profits.


“Moreover, it is advisable to pay off loans in dollars with income in colones, as it can help reduce the debt balance. It is also a good opportunity to acquire goods in dollars, as their price has decreased in terms of colones,” he recommended.


Vargas said that the current appreciation behavior of the colón is atypical.


“This also forces us to think that, at present, our colones are stretching further for debts, for example, in dollars, or to buy a new vehicle. This is something that can change over time. So perhaps the advice for people is to be cautious, that if today we have a surplus in our budget due to exchange rate differentials, let’s try to save, let’s try to build a cushion in case the dollar eventually resumes its natural course, which is a gradual depreciation of the colón against the dollar,” he added.


The exchange rate was at ¢522.31 for buying and ¢529.03 for selling today.



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