Economic conditions suggest that the currency of Costa Rica is moving from appreciation to devaluation against the dollar, according to economist Luis Mesalles.
This change would be caused by factors such as recent increases of oil prices and other raw materials, hikes in international interest rates, less access to external loans public and private, and the revaluation of other currencies.
In two months, the average value of the dollar has increased from ¢ 536 to ¢ 539 in the foreign exchange market (MONEX).
Mesalles considers that nominal devaluation only would have a short-term effect, which in time would be gone, and also would cause prices to increase across the board.
To improve the economic outlook, the expert suggests tackling the fiscal deficit, improving infrastructure, reducing energy costs, and increases to productivity.
Source: La Nación.