QCOSTARICA — Costa Rica exporters, producers, businessmen, and representatives of the tourism sector are just some of those who have raised their voices due to the fall in the dollar exchange rate.
Central bank intervention has been requested on multiple occasions, but what is the reason for this behavior in the currency?
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The Banco Central de Costa Rica (BCCR) – Central Bank – recognizes that there is imprecise data in the categorization of the origin of dollars, but they emphasize that the money that enters the foreign currency market comes from banking and financial entities that are supervised by the General Superintendency of Financial Entities (SUGEF).
However, to have greater control, the Central Bank will, starting April 1, require intermediaries to send transactions with the respective client identification number of anyone buying and selling dollars to banks and financial institutions.
The data request is expected to have the first results in three months.
During 2023, 46% of foreign exchange flows negotiated over the counter were classified as “Others”, a figure equivalent to US$1.7 billion dollars.
The announcement was made on Tuesday by the president and general manager of the Central Bank, Róger Madrigal and Hazel Valverde, respectively, in a press conference in which they responded to recent questions about foreign currency income registered in a category that does not mention its origin. Link to the announcement by the Central Bank.
Valverde explained that with the identification number, the Central Bank will be able to assign an economic activity to each transaction.
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“This will improve the analysis of the private exchange market both from the perspective of supply and demand for foreign currency,” she commented.
For its part, the Asociación Bancaria Costarricense (ABC) – Costa Rican Banking Association – asked the Central Bank to guarantee the use, data security, access, and purpose of information, following the monetary entity’s new request to financial entities to cross clients identification who purchase or sell dollars at banks and financial institutions.
The ABC asked for a guarantee from the Central Bank for the use of the information in strict accordance with the objective of the request.
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