American Expatriate Costa Rica

Higher oil prices explain recent dollar increase

The higher dollar demand to import raw materials, specially oil, is one of the main reasons to understand recent dollar exchange rate increases, according to officials and analysts.

Since May, 30th, the dollar exchange value has risen 4,91 colones reaching 545,48 colones per dollar on Thursday.

The public sector has had to spend more dollars in fuel imports due to higher international prices of oil in the last weeks.

The price of other raw material such as corn, wheat, soy beans, and sugar, have also increased in the last month.

According to Adriana Rodríguez, a manager in Scotiabank, the dollar raise is also due to an increase in savings in that currency,  because it yields more attractive interest rates than colones.

Another contributing factor has been a lesser access to external funding for the government and national banks, according to Gabriel Alpízar, a manager in Banco de Costa Rica.

Source: La Nación.