The Costa Rica News (TCRN) – According to a report on Bloomberg Business, Costa Rica’s currency (the Colón) is the Western Hemisphere’s best performer this year. The primary reason given is low oil prices have cut demand for American dollars to import crude.

The Colón has gained 1 percent this year, representing the best gains of all Latin American and Caribbean currencies. The Colón on Thursday held at 534.3 Colones per 1 US dollar.

According to Bloomberg, a drop in oil prices and reduced oil bill of 30 to 40 percent, is the main source of demand for foreign currency in the local exchange market.

Costa Rica’s private banks hold most of their capital in dollars (6 billion colons in the first quarter), so the currency gains actually cost Costa Rica. Costa Rica’s recently announced that it plans buy as much as $800 million in 2016 to float against the US dollar.

Costa Rica continues to shore up its money strategy for future gains by selling $1 billion in global bonds in March, 2015.

The Costa Rica News (TCRN)
San Jose Costa Rica