The hydrocarbon and fuel prices that are currently affecting Costa Rica, as well as the cyberattack on the largest oil pipeline network in the United States, the Monetary Fund, the public employment law, the electoral issue that generates expectations in investors, businessmen and consumers, herd vaccination and immunization and of course the pandemic are different factors that are pushing up the dollar in the country.
This is explained by Elizabeth Morales, Deputy Manager of Coopecaja who indicated that, in terms of fuel costs, these make our oil bill more expensive, which means that the demand for the dollar increases and therefore the price of it rises.
“There is great uncertainty in the economic sector that has to do with aspects such as the pandemic, restrictions and closures, as well as the fear of contagion that has pushed the expectations or interest of the investor to take refuge in a currency with less risk such as the dollar with respect to the colon that at this moment has an impact due to the country risk that we face”, commented the expert.
Tendency to increase
Against this background, the issue is complicated and according to the expert it could happen that the price of the dollar remains and even tends to raise more. “There are many factors that are developing and that in some way directly or indirectly affect the value of the currency,” she said.
Faced with this situation, the assistant manager of Coopecaja recommends being very cautious, especially for those who are thinking of applying for a loan in dollars, especially since there are bidders who induce the purchase of goods through the acquisition of loans in dollars such as mortgage loans. Offered by the vertical condominiums that have gained strength in recent years and the pledge loans.
Careful with your budget
“Given this scenario, people must be very clear about their budget, ability to pay and up to what level they are willing to reach the currency exchange rate and thus have a real projection of what can be covered and paid. Every month,” Morales explained.
Some go to the reconversion of their credits. Debtors who keep their loans in dollars are the most affected by this increase in the price of the dollar. And, although the expert indicates that in the last year the tendency of people to choose their loans in dollars has changed, there are those who for convenience in their installment keep their loans in dollars with the risk that the exchange rate continues to grow as has happened during 2021.
“Indeed some debtors, especially credit cards, have transferred their loans from dollars to colones because the exchange risk is very high in these times, so that has made some people prefer to reconvert their credit debts to colones.”
Morales explained that there is also currently an advantage because the rates in colones have fallen a lot so that, although the quota remains similar, the risk that the exchange differential affects its liquidity is mitigated.
Precisely because there is a greater risk for debtors, Coopecaja does not manage a line of credit in dollars, so it prefers to offer better rates on loans in colones, with attractive terms and competitive conditions so that debtors receive a greater benefit.