American Expatriate Costa Rica

Central Bank disagrees with artificial devaluation of the colon against dollar

The president of the Central Bank of Costa Rica, Olivier Castro, disagrees with an artificial devaluation of the colon against the dollar.

Castro said a competitive exchange rate depends on controlling factors that affect productivity, such as fiscal deficit and a positive trade balance.

The Central Bank is not responsible for rising unemployment, Castro said.

According to Castro, higher inflation or an appreciation of the dollar wouldn’t solve the employment problem, on the contrary, it could cause more unemployment.

Source: Diario Extra.