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Costa Rica aims to stem flows of hot money

Wednesday, January 16, 2013

Costa Rican president Laura Chinchilla has proposed a series of strategies to tackle a surge in investment which threaten to appreciate the country's currency, the colon, and destabilize the economy.

One of the main issues of an appreciation of the colon is that it makes exports less competitive.

Chinchilla, along with vice-president Luis Liberman, have proposed to increase tax on long-term deposits from investors to 25 percent, from the current 8 percent.

Source (in Spanish)