Many people and companies in Costa Rica concluded that the dollar will be more expensive and they have decided to change the currency they use to save money or have debts.
According to information provided by the Central Bank, the growth of Costa Rican financial wealth (saving) has shown a growing trend in foreign currency while in colones, that trend remains constant.
The opposite happens with loans from the private sector: more people and companies are borrowing money in national currency, while dollar borrowing requests are decreasing.
Emmanuel Agüero, a specialist in Economic Analysis from Aldesa, believes that economic agents (consumers and companies) have increased their expectation on exchange rate depreciation, which means that they expect the exchange rate to rise.
The change in expectations regarding the value of the dollar provokes reactions based on the needs that are covered with this currency.
Likewise, Luis Diego Herrera, an economist at Acobo, said that an increase in the exchange rate is an incentive to dollarize deposits due to the gains that can be obtained due to the future devaluation.
In the case of credits, an increase in the value of the dollar could make the transaction more expensive. Potential debtors who have their income in colones will find it unattractive to request credits in dollars, because every time the exchange rate depreciates, their share becomes more expensive.
This gradual devaluation was accompanied by a permanent expectation that the dollar rates will increase.
Herrera believes that the measures established by the Superintendence of Financial Entities (SUGEF) of limiting the inflow of foreign currency explains the de-dollarization of recent months.