A question many of us are asking right now is: How is the colon appreciating so rapidly vs the dollar? Since June, 2022, the USD has lost over 25% of its value against the Costa Rican Colon. No other currency worldwide has appreciated so much against the dollar, not the Sterling Pound, not the Swiss Franc, nor the Japanese Yen.
At this writing the official exchange rate is 501 colons to the dollar, the lowest it has been in a decade. Some banks have it pegged as low as 490 to the dollar.
All sectors that deal in transactions involving the dollar– tourism, import/export, etc are feeling the bite. There have been layoffs. Things are so dire that the archbishop of the Catholic church, which still wields considerable power here, has been asked by these sectors to intervene. The response of the Costa Rica government has been akin to Let Them Eat Cake. On the surface,…
