On Wednesday evening, the central bank announced an expansion in its rules for managing the Foreign Currency Market (Monex), allowing for interventions to correct long term fluctuations of exchange rates. According to Rodrigo Bolaños, President of the Central Bank the change will prevent a “snowball effect” when exchange rates slides consistently in one direction. He added that the bank would naturalize some of the gains made by the dollar, relative to the colon in recent days.
Along with the new policy, the bank increased short term interest rates to 4.75 percent, which is a one percent increase. The changes are expected to keep the economy within the annual 4 percent target rate for inflation.