Costa Rica central bank faces surfeit of dollars

According to the Costa Rican Central Bank, foreign investors this year have increasingly pumped funds into the country which will cause a huge increase in inflation and the cost of living in 2013.

Rodrigo Bolaños, president of the Central Bank, said that foreign investors are attracted to Costa Rica because of the high interest rates they can earn in colons, stability in the exchange rates and low inflation; however, their excessive investment threatens to increase the prices of goods and services this coming year.

Bolaños said that the country “has never had such high reserves in millions of dollars.”

Source: Inside Costa Rica