exchange rate policy is a part of economic policy consisting of a set of actions
taken by the Banco Central seeking to make the exchange rate consistent with
prevailing conditions in the Costa Rican exchange market and the evolution of
the variables that determine this macro price in the long term.
of the transition towards a monetary policy using Inflation Targets, which
requires greater exchange rate flexibility, the Board of Directors of the
Banco Central de Costa Rica (BCCR), decided to migrate from an exchange rate
band regime to a managed floating system, pursuant to Article 5 of session
5677-2015 of January 30, 2015.
managed floating scheme, the exchange rate is defined by the market, but the
Banco Central reserves the right to carry out intervention operations in the
foreign currency exchange market to moderate strong exchange rate fluctuations
and prevent exchange rates which deviate from those which are consistent with
the behavior of variables that determine its medium- and long-term tendencies.
managed floating system in effect as of February 2, 2015, the BCCR:
allow the exchange rate to be determined by foreign currency supply and
demand, but the Bank will be able to participate in the exchange market to
fulfill its own foreign currency requirements and those of the Non-banking
public sector at its own discretion, to avoid extreme fluctuations in the
carry out direct operations or use foreign currency negotiation instruments
it deems necessary pursuant to rules and regulations in effect.
use the intervention rules defined by the Board of Directors of the BCCR in
its transactions to stabilize the foreign currency market and limit extreme volatility
during a day, or on a day-to-day basis.
is not a target or commitment to a particular exchange rate level.