Q MONEY – In the last several weeks we’ve seen the Dollar exchange rate go from 545/558 colones to one US Dollar in December to 555/568 to the beginning of this month and then in the last few days drop to today’s 552/565.
But why, without asking why hasn’t the Colon/Dollar exchange shifter similar to the Colombian Peso or Canadian loony?
The answer lies in one word: intervention.
Costa Rica’s Central Bank (Banco Central de Costa Rica) has a policy of intervention to stabilize exchange Rate
Although the intervention is not always daily, last week, in one day, on Thursday, the Central Bank sold US$30.9 million on the wholesale foreign exchange market in order to moderate the upward trend that had been seen in the price of the dollar