Exchange Rate Regime
In Costa Rica, the exchange rate regime in place since January 2015 involves managed floating. Characterized by exchange rates, this regime is driven by supply and demand forces, while the Central Bank intervenes only to smooth episodes of high volatility without exerting influence on the trend.
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BCCR Participation in the Exchange Market
The Central Bank participates in the exchange market through the purchase or sale of foreign currency solely for the following purposes:
- Meet its own foreign currency requirements to increase the level of reserves and address external shocks.
- Manage foreign currency requirements for non-financial public companies.
- Intervene in episodes of high volatility that may disrupt price formation in the market.
Monex
Monex is Costa Rica’s electronic foreign currency market developed by the BCCR, where individuals, banks, exchange intermediaries, companies, and other authorized entities can buy and sell foreign currency on a daily basis. The exchange rate level is determined by these transactions.
Similarly, the BCCR uses this platform to conduct transactions intended to meet its foreign currency requirements, to supply the demand of the Nonbank Public Sector (NBPS), or to carry out stabilization operations.
This system enables price formation in the foreign exchange market and facilitates transparent, efficient transactions.
BCCR Exchange Rate Policy
The Central Bank’s exchange rate policy is not intended to achieve a specific exchange rate level or path, as this is determined by supply and demand forces. Instead, the policy is aimed solely at promoting the proper functioning of the exchange rate market and supporting an orderly price formation process.