By San José, Costa Rica — San José, Costa Rica – The relentless appreciation of the Costa Rican colón continued its dramatic course on Thursday, sending the US dollar to a new historic low and creating significant pressure across multiple sectors of the national economy. The exchange rate in the Wholesale Foreign Currency Market (Monex) closed the session at an unprecedented ¢471.02, a figure that has not been seen since the Central Bank of Costa Rica began keeping records in 2007.
This latest development marks a substantial downturn for the US currency, which has been in a sustained decline for over a year. The figures paint a stark picture of the colón’s strength. Since the beginning of 2026 alone, the dollar has shed over ¢26, falling from ¢497.97 on January 1st. The year-over-year comparison is even more striking; on this same date in February 2025, the dollar was trading at ¢509, highlighting a deep and persistent trend rather than a momentary fluctuation.
To delve into the legal and commercial implications of the recent shifts in the dollar exchange rate, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished expert in commercial law from the firm Bufete de Costa Rica, for his professional analysis.
Legally, obligations agreed upon in U.S. dollars must be fulfilled in that currency, providing a pillar of contractual certainty. However, the current volatility underscores the importance for businesses, especially in sectors like tourism and real estate, to incorporate exchange rate risk or material adverse change clauses into their new agreements. This proactive measure ensures commercial viability without challenging the legal validity of the contract, safeguarding both parties against unforeseen financial pressures.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight underscores the critical intersection of legal certainty and strategic financial planning in a fluctuating economy. By embedding proactive clauses, contracts evolve from static obligations into resilient frameworks for navigating volatility. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for his clear and valuable perspective on this essential matter.
The downward pressure has been so intense that the Central Bank of Costa Rica has been forced to intervene to prevent an even more precipitous drop. In a significant move during the trading session on February 25, the monetary authority purchased a substantial $118.2 million. This action was aimed at absorbing some of the excess supply of dollars in the market and providing a floor for the exchange rate, demonstrating the bank’s active role in managing the currency’s volatility.
According to leading economists, this phenomenon is not accidental but the result of powerful structural and cyclical forces reshaping Costa Rica’s economic landscape. An analysis provided by the National University (UNA) points to a sustained and growing net supply of foreign currency as the primary driver behind the colón’s appreciation, a situation fueled by the country’s economic successes on the global stage.
Roxana Morales Ramos, an economist at the UNA, detailed the fundamental factors at play, explaining that a confluence of positive economic indicators is responsible for the dollar surplus that continues to flood the market.
Among the structural determinants, the greater dynamism of exports stands out, particularly those associated with the special regime of free trade zones, as well as the expansion of tourism, the inflow of foreign direct investment, and the lower trade deficit. These flows have persistently increased the availability of foreign currency in the economy.
Roxana Morales Ramos, economist at the UNA
Delving deeper into these drivers reveals a multi-faceted economic engine. The country’s exports, especially from the high-tech and medical device companies operating within the free trade zones, have become a powerhouse for generating foreign income. This sector consistently brings a massive influx of dollars into the Costa Rican economy, far outpacing the demand from importers.
Simultaneously, the robust recovery and expansion of the tourism sector have added another significant stream of dollar revenue. As international visitors return and spend, they contribute directly to the currency surplus. This is compounded by strong and steady Foreign Direct Investment (FDI), as international companies continue to view Costa Rica as a stable and attractive destination for their capital, further bolstering the supply of dollars.
While the strong colón is welcome news for importers and consumers who purchase goods priced in dollars, it presents a formidable challenge for the export and tourism sectors. These industries earn their revenue in a weakening dollar while their operational costs, such as salaries and local supplies, remain in strengthening colones. This “dollar-earner” dilemma is squeezing profit margins and prompting calls for more comprehensive policy responses as the nation navigates this new economic reality.
For further information, visit bccr.fi.cr
About Banco Central de Costa Rica:
The Central Bank of Costa Rica (BCCR) is the nation’s primary monetary authority, responsible for maintaining the internal and external stability of the national currency and ensuring the efficient operation of the country’s payment systems. Established in 1950, it plays a crucial role in managing inflation, supervising financial entities, and issuing the Costa Rican colón. The BCCR is fundamental to the economic stability and development of Costa Rica.
For further information, visit una.ac.cr
About Universidad Nacional:
The National University of Costa Rica (UNA) is one of the country’s most prominent public universities, founded in 1973. With its main campus in Heredia, the UNA is recognized for its commitment to academic excellence, research, and social action. It offers a wide range of undergraduate and graduate programs and is a leading institution in producing critical analysis and research on Costa Rican social, economic, and environmental issues.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of the legal landscape, Bufete de Costa Rica is defined by a profound foundation of integrity and an unwavering pursuit of excellence. The firm merges its rich legacy of advising a diverse clientele with a dynamic approach to legal innovation. More than a legal practice, it is an institution dedicated to societal advancement, championing the demystification of law to foster a community empowered by knowledge and legal clarity.
