San Jose [TCRN} – The decline in the dollar buying by the public sector bank in the wholesale market (Monex) has been responsible for the fall in the value of the currency.
The influence of this sector is evident if one analyzes participation of the public sector in recent weeks in Monex. In the first week of June participation of non-bank public companies averaged 66.7% and the exchange rate was 505.21 colones.
In the second week of June, the share was 45.4% and the exchange rate closed last Friday at 500.92 colones. During this past week the public sector became a net seller, that is, not only did it not come to buy foreign exchange, it sold, and the exchange rate reached the level of 500 colones. Yesterday, in Monex, the trade was at 500 colones minimum and maximum 500.74 colones.
Why not buy the public sector foreign currency?
Many believe the government has been picking up dollars in the stock market system, which they then sell to meet their needs in colones.
The Government, being in a surplus dollar state causes the public sector banks to have more dollars and less need to purchase in the wholesale market, causing prices fall in the exchange rate.
Another reason is there is a quarterly tax payment in the month of June, which requires companies and individuals to sell dollars.
Another point is that companies like ICE financed in international markets (captured $ 500 million) and are now colonizing part of that income.
Given the fall in the exchange rate, the central bank bought $ 44 million, this week to slow the momentum.
The Costa Rica News (TCRN)
San Jose Costa Rica