Costa Rica’s Businesses Blame Central Bank for Job Losses :

Costa Rica’s productive sector blames the closing of companies and loss of jobs on the Central Bank (BCCR). Thirteen private sector groups and chambers met with representatives of the Bank to explain the problems they are facing. “The Central Bank remains obstinate in its policies,” the representatives noted after the meeting.

At the end of the meeting, they concluded that both the Presidency and the Board of Directors of the Bank, together with the Executive Branch, have abandoned the productive sectors of the country.

“Despite the technical and social warnings, the Central Bank remains stubborn, so it is clear that from now on the consequences of business closures and increased unemployment with severe social impact will be the absolute responsibility of the Presidency and Board of Directors of the Central Bank,” they reported.

The Central Bank informed that during its presentation this Friday, it maintained the position it has held since 2022, which consists of stating that the price of the dollar is defined by market forces, i.e., supply and demand. Additionally, it was pointed out that BCCR does not intervene in the exchange market to reduce inflation.

The different associations have complained about the bank’s policies since 2022, when the current administration began. They, once again informed that, if such policies are maintained, hundreds of companies and thousands of jobs are at risk of disappearing.

One of the questions raised against the bank is the failure to meet its inflation target, since 2022. In fact, country has been in deflation for 10 months.

“This causes loss of credibility in the inflation targeting system and suspicion of attempting to maintain institutional investment portfolios without currency variations, anchoring the exchange rate level close to 500 per dollar,” the statement issued by the Chambers said.

Meanwhile, the productive sector emphasizes that it is not asking for artificial devaluations, subsidies, or inorganic credit issues. What they are asking for are monetary and exchange policies that take into account the control of inflation and the orderly development of the current system. This would prevent an economic crisis and massive layoffs.

At the end of the meeting, there were no proposals for solutions or attention to address the problem of competitiveness that is being generated, which could lead to greater social.