The Central Bank of Costa Rica (BCCR) will intervene the exchange rate due to “market imperfections” and they are using all the available methods to keep a low inflation.
We have been able to choose the exchange-rate regime for 10 years and we have to consider the learning curve that the process entails,
said President of the Central Bank of Costa Rica Olivier Castro.
However, Eduardo Lizano, the representative of Costa Rican Union of Chambers and Associations of Private Enterprise (UCCAEP), stated that the BCCR does not have to intervene. Instead, a greater volatility in the exchange rate should exist, so that, people who have USD loans and economic agents are aware of the currency risk.
On the other hand, the real concern is not the inflation issue, but the unemployment, that in July rose to 9.4% and it is reaching a higher level in rural areas. As consequence, the BCCR must stop its interventions because it is generating losses, as declared by former banker Gerardo Corrales.