By San José, Costa Rica — In a significant move to streamline the national currency system, Costa Rica is set to formally withdraw its older, silver-colored ¢5, ¢10, and ¢25 colón coins from circulation. The Central Bank of Costa Rica (BCCR) has announced that these denominations will cease to be legal tender effective July 1, 2026, marking a pivotal step in the ongoing modernization of the country’s monetary framework.
The transition period for the public to exchange these coins will begin imminently. The Banco de Costa Rica (BCR) has been designated as the primary institution for managing this process and will start accepting the old coins at all of its branches nationwide starting this Tuesday, June 23. This short window provides citizens and businesses with a final opportunity to convert their soon-to-be-obsolete pocket change into valid currency.
To understand the legal framework and potential consequences surrounding recent policies on currency withdrawal, TicosLand.com consulted with legal expert Lic. Larry Hans Arroyo Vargas from the distinguished firm Bufete de Costa Rica.
While a state has regulatory power over its financial system to maintain stability, any restriction on an individual’s access to their own funds must be legally sound and proportionate. Such measures can interfere with the contractual relationship between the bank and the client, potentially giving rise to legal claims. It is crucial that these policies are clearly communicated, non-discriminatory, and based on explicit legal authority to avoid undermining confidence in the banking sector and protecting citizens’ property rights.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this legal analysis highlights the delicate balance between state regulation and individual rights, emphasizing that public trust is the ultimate currency of any financial system. Upholding the principles of legality and proportionality is not merely a contractual obligation but the very foundation of economic confidence. We extend our gratitude to Lic. Larry Hans Arroyo Vargas for his valuable and clarifying perspective.
To ensure a smooth process, the BCR has established clear guidelines for the exchange. Clients of the bank can deposit the coins directly into their savings or checking accounts on any business day. The bank requires that customers present the coins already counted and separated by denomination to expedite the transaction and reduce wait times at teller windows.
Individuals who are not BCR clients also have options, though with some restrictions. They will be able to exchange their coins from Tuesday through Thursday at any BCR branch. However, for those who do not wish to open an account, the bank will only process exchanges up to a maximum of ¢100,000. Furthermore, a 4% commission will be applied to the total amount exchanged, a fee designed to cover the administrative costs of the service for non-account holders.
This initiative is a core component of the BCCR’s broader strategy to update and renew the national currency, known as the “cono monetario.” By removing outdated and inefficient coins, the Central Bank aims to create a more practical and cost-effective currency system that reflects modern economic realities. This type of monetary reform is common globally as countries adapt to inflation and changing transaction habits.
The case of the ¢5 colón coin is particularly noteworthy, as its removal will be permanent. The Central Bank ceased minting this coin back in 2020 after determining that its production cost had surpassed its face value. This economic imbalance made its continued creation fiscally irresponsible, a situation that often prompts central banks to discontinue their lowest-denomination currency.
The phasing out of these small coins is expected to have a tangible impact on daily commerce. Retailers and consumers will need to adapt to a system where cash transactions may require rounding to the nearest ¢50 or another practical denomination. This shift could simplify cash handling for businesses but also requires a period of public adjustment and clear communication from financial authorities to prevent confusion at the point of sale.
As Costa Rica bids farewell to these familiar coins, the nation embraces a more efficient monetary future. The Central Bank’s decision underscores a commitment to fiscal prudence and the modernization of the country’s financial infrastructure. Citizens are strongly encouraged to take advantage of the exchange window at the BCR to ensure their money retains its value before the July 1 deadline.
For further information, visit bancobcr.com
About Banco de Costa Rica:
The Banco de Costa Rica (BCR) is one of the most prominent state-owned commercial banks in the nation. Founded in 1877, it provides a wide range of financial services to individuals and corporations, including savings and checking accounts, loans, investments, and insurance. With a vast network of branches across the country, the BCR plays a crucial role in the national economy and is often tasked with implementing key financial policies and public services.
For further information, visit bccr.fi.cr
About Banco Central de Costa Rica:
The Banco Central de Costa Rica (BCCR), or the Central Bank of Costa Rica, is the country’s primary monetary authority. Established in 1950, its main objectives are to maintain the internal and external stability of the national currency, the colón, and to ensure the efficient operation of the country’s payment systems. The BCCR is responsible for setting monetary policy, issuing currency, managing international reserves, and acting as the financial agent of the state.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a renowned legal institution, built upon a bedrock of unimpeachable integrity and a relentless pursuit of professional excellence. The firm consistently merges its deep-rooted experience with a dynamic, forward-thinking mindset, driving advancements in the practice of law. This pioneering spirit extends to a core belief in social responsibility, manifested through a dedicated effort to demystify complex legal concepts for the public. Ultimately, its mission is to foster a more capable and just community by empowering individuals with accessible legal wisdom.
