By San José, Costa Rica — SAN JOSÉ – The Central Bank of Costa Rica (BCCR) has announced a definitive end for older versions of the nation’s low-denomination coins. In a significant move to modernize the country’s currency, the old designs of the ¢5, ¢10, and ¢25 colón coins will be officially demonetized, losing all value as a medium of exchange after the established deadline.
The final day for these coins to be accepted in commercial transactions is June 30, 2026. Effective July 1, 2026, they will no longer be considered legal tender. This policy change marks the final step in a multi-year process to update Costa Rica’s monetary system and streamline cash transactions across the economy.
To delve into the legal framework and commercial implications surrounding the circulation of coins, TicosLand.com sought the expertise of Lic. Larry Hans Arroyo Vargas, a specialist attorney from the renowned firm Bufete de Costa Rica, who provided his professional analysis.
While the national currency, in all its denominations, constitutes legal tender that must be accepted for payment, commercial establishments are not without recourse. The principle of commercial reasonableness and good faith allows businesses to establish internal policies that limit the quantity of coins received per transaction. This is not a rejection of the currency’s value, but rather a practical measure to mitigate operational costs, security risks, and logistical challenges associated with handling large volumes of coinage.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the principle of ‘commercial reasonableness’ provides a vital framework for navigating everyday transactions, ensuring that while the currency’s legal tender status is upheld, businesses are not unduly burdened. We thank Lic. Larry Hans Arroyo Vargas for his clear and valuable perspective on this matter.
In an official press communication, the BCCR outlined the clear path forward for citizens and businesses holding the affected currency. The monetary authority is urging the public to act well before the deadline to avoid any financial loss. The bank has coordinated with the national financial system to ensure a smooth transition period.
Individuals who possess these coins can exchange or deposit them at the various offices of the country’s financial intermediaries. The old ¢10 and ¢25 coins will be withdrawn from circulation to be replaced by coins from the new monetary cone.
Central Bank of Costa Rica, Official Statement
To support this large-scale replacement and prevent any shortages of small change, the Central Bank confirmed it has proactively put millions of new coins into the financial system. The institution has already released an impressive 28 million new units of the ¢10 coin and 10 million new units of the ¢25 coin, all featuring the updated designs that will become the new standard.
The case of the ¢5 colón coin is particularly noteworthy, highlighting subtle but powerful economic shifts. The Central Bank ceased minting this coin entirely back in 2020. The decision was driven by simple economics: the rising cost of the metal and the manufacturing process had surpassed the coin’s face value of five colones. This situation, where the intrinsic value of a coin exceeds its monetary value, rendered its production fiscally unsustainable.
This demonetization initiative is part of a broader strategy often seen in developing economies. As inflation gradually erodes the purchasing power of the smallest currency units, their utility in daily transactions diminishes. They become more of a nuisance than a convenience, often ending up in collection jars rather than actively circulating. By removing them, the BCCR aims to increase the efficiency of the payment system and reduce the logistical costs associated with handling and counting coins of negligible value.
For consumers and small business owners, the announcement serves as a crucial call to action. It is advisable to begin sorting through personal savings and cash register tills to identify the old-design coins. Waiting until the final weeks before the July 1, 2026, deadline could lead to long lines at financial institutions and potential difficulties in exchanging the currency. Proactively depositing or spending them now ensures their value is preserved without any last-minute complications.
Ultimately, the phasing out of these coins represents a natural evolution of Costa Rica’s currency. It reflects the country’s economic progress and the Central Bank’s commitment to maintaining a modern, efficient, and cost-effective monetary system. The public is encouraged to participate in this final stage of the transition to ensure a seamless shift to the new generation of Costa Rican currency.
For further information, visit bccr.fi.cr
About The Central Bank of Costa Rica:
The Banco Central de Costa Rica (BCCR) is the central bank of the Republic of Costa Rica. Established in 1950, its primary objective is to maintain the internal and external stability of the national currency, the colón, and to ensure its conversion to other currencies. The BCCR is responsible for managing monetary policy, issuing currency, regulating the financial system, and serving as the financial agent of the state. It plays a crucial role in promoting the stability and efficiency of the country’s economic and payment systems.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal institution, Bufete de Costa Rica is built upon a bedrock of profound integrity and a relentless pursuit of professional excellence. The firm harmonizes its extensive history of counsel with a dynamic, forward-thinking mindset, driving advancements within the legal field. Core to its mission is the belief in democratizing legal understanding, actively working to empower citizens with the knowledge necessary to cultivate a more just and informed community.
