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Costa Rican central bank forced to intervene again

Friday, March 8, 2013

After nearly a month without having to buy dollars to prevent the dollar from sinking below the 500 colon “bottom band,” the Costa Rica's central bank had to intervene in the market again as the dollar sank to 500.01 colones on the Monex exchange yesterday.

A bill that was introduced that would control speculative capital inflows helped the dollar rebound slightly earlier this year, but it didn’t last long.

Between February 14 and 15, the Central Bank was forced to purchase more than $11 million to defend the 500 colon bottom band, and in the last 10 days has been forced to purchase a similar figure.

Source: Inside Costa Rica