Dollar rate down in Costa Rica after central bank pledge to intervene

The Central Bank of Costa Rica will intervene in the foreign exchange market in order to curb the sustained hike in the exchange rate of the dollar. This week, that price reached a historic high of 600 colones in various private banks.

The bank confirmed in a news release on Thursday that it has approved a plan to intervene in the foreign exchange market with up to $1 billion over the next days.

Róger Madrigal, director of the the bank’s economic division, said the recent behavior of the exchange rate “introduced risks for both price stability and the financial system.”

Bank officials, however, ruled out doing the intervention in a single day’s market session, as “it would be too aggressive,” Madrigal said.

Source: Tico Times