American Expatriate Costa Rica

What will happen to the USD exchange rate in the coming months?

According to the Central Bank of Costa Rica, the 2016-2017 Macroeconomic Program Review shows an accumulated depreciation of 2.1% (colon against USD).

In addition, private banks increased their foreign currency position in July, which has influenced the exchange rate.

September is usually a month with a greater abundance of USD; however, according to analysts at Scotiabank, the needs of the public sector are still present at the slightest flow of foreign debt and the private industry growing demand.

As a result, the Central Bank of Costa Rica is expecting the exchange rate to be around 560 colones by the end of 2016, but with a  550 to 571 colones fluctuation range.

Less rising options are expected because foreign currency offers usually increase in the last quarter of the year, which should offset the rising pressures that have taken place since May.

Banco Central has reiterated that they are not committed to a particular exchange rate. As consequence, individuals and companies should accept the foreign exchange risk regarding their savings and investment decisions.