QCOSTARICA — If the high appreciation of the colon against the U.S. dollar persists, companies that have income dollars will lose competitiveness and could cut jobs, according to Shirley Calvo, executive director of the Cámara Nacional de Turismo – National Chamber of Tourism.
In recent days, the dollar exchange at the state and private banks fell below ¢500, which is generating concern in the productive sector.
For the businesswoman, a stable and predictable dollar exchange rate between ¢560 and ¢600 colones would be an “adequately reasonable range with which the Central Government and the private sector could operate,” said Calvo.
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“With values in the exchange rate of more than 10 years ago and a real increase in the cost of raw materials, social charges, salaries, public services such as water, electricity and fuels, it is clear that financial problems are generated in companies and the competitiveness of the sector.
“When companies assume losses due to exchange differentials, their sustainability is put at risk and with it, thousands of jobs throughout the country (…) We consider that the various actors in the country’s production could feel some degree of stability with a type of stable and predictable exchange between ¢560 and ¢600,” Calvo said.
For the executive director of Canatur, exchange rate stability must provide security so that companies can continue investing in Costa Rica and exporters are not surprised by the negative effects of such abrupt volatility.
“We consider that the Central Bank has ample room to further reduce the Monetary Policy Rate, so that banks’ lending rates can be lowered. Temporary support measures can also be implemented for sectors affected by the exchange rate, such as reduction of social charges,” said Calvo.
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