American Expatriate Costa Rica

Private bank pays higher interest rates in dollars

According to data from Banco Central, the rates paid by private banks in dollars are significantly higher than those of public banks.

The difference could be due to a perception of lower risk in public banks, which reduces the cost of increasing the rates.

This situation is reflected in the movements of the Effective Rate in Dollars (TED) calculated by Banco Central at the beginning of the month. In the case of the basic rate, public banks have the greatest weight, so the effect is completely opposite.

The calculation of the Effective Rate in Dollars is a weighted average of the rates of gross interest operations uptake in dollars and foreign debt (uptake with non – residents, direct loans with foreign countries and external credit lines), negotiated during the previous week (from Wednesday to Tuesday) in a sample given by the Economic Division of Banco Central.

crhoy.com