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| Tico Times Announces "Floating Currency" https://forum.costaricaticas.com/viewtopic.php?f=1&t=46864 |
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| Author: | Hadish [ Mon Feb 02, 2015 12:08 pm ] |
| Post subject: | Tico Times Announces "Floating Currency" |
Tico times this am announced that CR will be reverting to a "Floating Currency" for the valuation of the Colon to the dollar. My question is for you market/money investors out there. What affect will a Floating Currency valuation have on the Colon, should we see an even better exchange rate for the dollar? As we all know the exchange rate at local banks in the states for the colon are horrible. Comments anyone???? 
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| Author: | WiseAsh [ Mon Feb 02, 2015 12:42 pm ] |
| Post subject: | Re: Tico Times Announces "Floating Currency" |
Hadish wrote: Tico times this am announced that CR will be reverting to a "Floating Currency" for the valuation of the Colon to the dollar. My question is for you market/money investors out there. What affect will a Floating Currency valuation have on the Colon, should we see an even better exchange rate for the dollar? As we all know the exchange rate at local banks in the states for the colon are horrible. Comments anyone???? The exchange rate for gringos in the past 12 months have been favorable to gringos by about 8%. The announcement is just restating formally what has been the policy since early least year. So their is no anticipation of change in valuation based on this announcement. However, the exchange rate could be affected by other variables. These variables would probably benefit gringos |
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| Author: | Mkink [ Mon Feb 02, 2015 1:27 pm ] |
| Post subject: | Re: Tico Times Announces "Floating Currency" |
Hadish wrote: Tico times this am announced that CR will be reverting to a "Floating Currency" for the valuation of the Colon to the dollar. My question is for you market/money investors out there. What affect will a Floating Currency valuation have on the Colon, should we see an even better exchange rate for the dollar? As we all know the exchange rate at local banks in the states for the colon are horrible. Comments anyone???? I see 585/600 colonies to the dollar by year end. How will it affect everyone, all hotel and local business costs will go up accordingly (inflation) with little or no change to tourists paying in dollars. Beer at 500/$1 equals Beer at 530/$1 (example not actual numbers), employees will receive 5/10% increase in wages (dictated by Gov) which will offset their higher food, electric, bus... expenses. Just my opionion. Those who hold bank cd's in colonies paying 7 to 8% will probably want to reconsider their investment and move to dollars. |
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| Author: | JazzboCR [ Mon Feb 02, 2015 1:32 pm ] |
| Post subject: | Re: Tico Times Announces "Floating Currency" |
The only thing that's guaranteed with a floating currency is volatility. Which way that volatility goes and how strongly, and whether that volatility affects you is 6-5 pick'em. 2 things CR has going for it are stability and reasonably strong foreign currency reserves. This Site may help investors/ money managers going forward: http://www.tradingeconomics.com/costa-r ... e-reserves I'd sure be careful about getting in too deep with arbitrage and/or gold-buying. |
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| Author: | WiseAsh [ Wed Feb 04, 2015 10:14 am ] |
| Post subject: | Re: Tico Times Announces "Floating Currency" |
A good forecast on "stable currency" Feb 2 (Reuters) - Costa Rica's central bank said on Monday is had lowered interest rates 50 basis points to 4.75 percent to take advantage of a steep decline in oil prices to help meet its 2015 economic growth target of 3.4 percent. Costa Rica is an energy importer, so low oil prices allow the central bank to try and raise growth with less risk of stoking inflation, which was 5.1 percent in 2014."For the next quarters, we estimate there will not be additional demand pressure on inflation, the exchange rate will continue relatively stable, and we will see the manifestation of the reduction in the price of hydrocarbons," the central bank said in its macroeconomic projections for 2015-2016.The rate cut was announced on Saturday, but took effect on Monday. In Saturday's projections, the central bank set an inflation target of between 3 percent and 5 percent for 2015. (Reporting by Kike Pretel; Editing by Alan Crosby) |
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