The Costa Rica News (TCRN) – The Central Bank of Costa Rica (BCCR) today announced a new form of currency intervention in order to correct significant fluctuations in the exchange rate market.
The difference of this new modality is not to intervene for abrupt fluctuations within a single session of the wholesale market, but would apply to volatility accumulated for several days or weeks.
Previously the Bank only intervened to curb sharp rises or falls in the exchange rate, but not for changing trends.
Rodrigo Bolaños, Central Bank President, said the new policies are not mandatory, but it is important to have on hand if needed.
This year Costa Rica has recorded the highest value of the dollar since September 2010.
As of today, the exchange rate for the dollar is 570.02 colones while on January 1 it stood at 507.80 colones, which means that so far this year it has increased by 12.25%.
Since January 2014 the Central Bank has sold a total of $308 million to avoid a sharp devaluation of the local currency. (ACAN-EFE)
The Costa Rica News (TCRN)
San Jose, Costa Rica