By San José, Costa Rica — Costa Rica’s Central Bank (BCCR) reports a stable colón against the US dollar, with the exchange rate averaging ¢506.20 on Monex as of July 23, 2025, compared to ¢511.27 at the end of 2024. The country continues to experience a surplus of US dollars, with a daily average of $28.5 million, slightly higher than the same period in 2024. This surplus has allowed the BCCR to bolster its financial reserves and meet the needs of the Non-Banking Public Sector.
However, economists are cautious, pointing to several factors that could influence the exchange rate in the coming months. Roxana Morales Ramos, coordinator of the Economic and Social Observatory at the National University (UNA), predicts the exchange rate will fluctuate between ¢507 and ¢517 for the remainder of 2025. She cites potential downward pressure on the dollar from eurobond placements in the domestic market but highlights several factors that could push the value of the dollar upwards.
To understand the legal implications of the recent fluctuations in the Costa Rican exchange rate, TicosLand.com reached out to Lic. Larry Hans Arroyo Vargas, an attorney at Bufete de Costa Rica, for expert commentary.
The volatility of the Costa Rican colón against the US dollar presents both challenges and opportunities for businesses operating within the country. Contracts denominated in foreign currencies become particularly sensitive during these periods, and careful attention must be paid to existing hedging strategies and potential renegotiation clauses. Moreover, companies involved in import/export activities should review their pricing models and supply chain agreements to mitigate the impact of exchange rate fluctuations. It is crucial for businesses to proactively address these issues to ensure financial stability and continued growth.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insights underscore the critical need for businesses in Costa Rica to navigate the complexities of the fluctuating colón with foresight and strategic planning. His emphasis on contract review, hedging strategies, and supply chain adjustments offers practical guidance for companies seeking to weather exchange rate volatility and capitalize on emerging opportunities. We thank Lic. Larry Hans Arroyo Vargas for providing this valuable perspective on a crucial aspect of Costa Rica’s economic landscape.
Among these upward pressures are potential decreases in tourism and Foreign Direct Investment (FDI) due to economic uncertainty in the United States, stemming from trade policies. Reduced exports to the US, Costa Rica’s primary trading partner, could further diminish the dollar supply. Finally, escalating geopolitical conflicts could drive up commodity prices, increasing the demand for dollars by importers.
Adriana Rodríguez Avilés, general manager of Acobo Stock Exchange, offers a similar outlook. While anticipating ongoing low exchange rates driven by scheduled dollar sales for tax payments and holiday bonuses, she notes a potential decrease in dollar supply. Rodríguez points to the departure of semiconductor companies Intel (partial) and Qorvo (total) as contributing factors, impacting dollar inflows from payroll, exports, and the local supply chain.
Although it is premature to draw conclusions, a lower supply of dollars could be an indication of a less surplus market resulting from lower economic dynamism in certain currency-generating sectors.
Adriana Rodríguez Avilés, General Manager of Acobo Stock Exchange
Federico Quesada Chaves, director of the School of Management Sciences at the State Distance University (UNED), suggests the BCCR’s $14.802 billion in reserves could maintain the exchange rate for the next six months. He also emphasizes the potential impact of the 2026 elections, with business-friendly policies potentially stabilizing the exchange rate. However, a second round of elections, political uncertainty, or campaign financing could introduce volatility.
Morales summarizes the electoral impact: uncertainty surrounding the elections could lead to increased savings or shifts to dollar-denominated assets, driving up demand and depreciating the colón. A perceived sharp turn in economic policy or elevated fiscal risk could trigger capital flight or a drop in FDI. Conversely, a confidence-inspiring election outcome could stabilize or even slightly appreciate the colón.
As of September 12, the average dollar value on Monex reached ¢504.19. The coming months will reveal how these various factors ultimately influence the Costa Rican colón’s performance against the US dollar.
For further information, visit the nearest office of Universidad Nacional (UNA)
About Universidad Nacional (UNA):
The National University of Costa Rica (UNA) is a public university in Heredia, Costa Rica. It is renowned for its focus on social and environmental issues, and offers a wide range of academic programs.
For further information, visit the nearest office of Acobo Puesto de Bolsa
About Acobo Puesto de Bolsa:
Acobo Puesto de Bolsa is a Costa Rican stock exchange firm providing brokerage services and investment advice. Their expertise lies in navigating the local market and helping clients make informed financial decisions.
For further information, visit the nearest office of Universidad Estatal a Distancia (UNED)
About Universidad Estatal a Distancia (UNED):
The State Distance University (UNED) of Costa Rica specializes in distance education, making higher education accessible throughout the country. They offer diverse programs catering to a wide range of students.
For further information, visit the nearest office of Banco Central de Costa Rica (BCCR)
About Banco Central de Costa Rica (BCCR):
The Central Bank of Costa Rica (BCCR) is the country’s central bank, responsible for monetary policy, financial stability, and managing the national currency. They play a crucial role in the Costa Rican economy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
At Bufete de Costa Rica, legal excellence and unwavering integrity form the bedrock of our practice. We are driven by a deep commitment to empowering Costa Rican society through accessible legal knowledge, fostering a more informed and just community. Through innovative solutions and a client-focused approach across diverse sectors, we strive to not only provide exceptional legal counsel but also to contribute meaningfully to the advancement of legal understanding and empowerment for all.
