An increase in the Ministry of Finance’s demand for dollars has caused the Central Bank to increase the amount of international monetary reserves for direct sales, to prevent this pressure from going to the Foreign Currency Market (Monex).
The Treasury, which traditionally went to the market to sell its foreign currency surpluses, is now demanding foreign currency since it has more maturities (disbursements) than deposits in dollars.
Hacienda’s demand for resources during the third quarter was $211 million, and so far in the fourth quarter it has already purchased $275 million. Rodrigo Cubero, president of the Central Bank, said that this behavior of the ministry has occurred in the course of the last six months.
This increase in the demand for dollars from the government joins the increase in the foreign currency needs of the Costa Rican Petroleum Refinery (RECOPE), given an increase in international prices of hydrocarbons.
Why does the exchange rate go up? Cubero explained that at present there are several reasons that explain the increases in the exchange rate of the last two and a half months:
1. Increase in interest rates in the United States: there is an attraction to bring investments to that market. This affects all economies with a flexible exchange rate.
2. An increase in the oil bill, due to the increase in international prices of hydrocarbons.
3. A seasonal drought, before the arrival of tourism in the last months of the year and the income of transnational resources to pay taxes and bonuses.
4. Uncertainty about the fiscal plan puts pressure on the exchange rate, because there are people and companies protecting their savings in this currency.
At present, international monetary reserves reach $ 6,881 million.