The board of directors of the Central Bank of Costa Rica has agreed to suspend the new modality of negotiation of the US dollar in the national currency market known as “Monex-Auction”.
Initially, the service would begin its operation on Wednesday, July 12th, from 9:10 a.m. to 10 a.m. The purpose was to improve the formation of prices in the exchange market, increasing the temporary coincidence of bidders and applicants and the flow of information in the National market.
According to a statement from the Central Bank, the board based its decision on the movements observed in the exchange market during the last weeks and that the introduction of the mechanism of negotiation could generate some uncertainty in that market.
In principle, the new mechanism would work in addition to that currently offered by the Foreign Currency Market (Monex) called “Monex-Continuous”, whose hours are held from 10 am to 1 pm. In the agreement, the directors authorized the Bank’s Administration to establish a new start date of operation of “Monex-Auction”, which must be informed to the market with least two weeks in advance.
It was also agreed that the new Monex service fees established in the Payment System Regulation will come into effect two weeks after the “Monex-Auction” mechanism is activated. On the other hand, the maximum trading amount in “Monex-Continuous” will come into effect one week after the “Monex-Auction” mechanism starts.