By San José, Costa Rica — Costa Rica is celebrating a major economic milestone, with its international reserves reaching an unprecedented $15.03 billion as of August 28, 2025. This represents a significant increase of $424.7 million compared to the previous month, providing a robust financial cushion and signaling strong economic health.
The current reserve level equates to 14.7% of the national GDP and a remarkable 142% of the internationally recommended minimum, offering a strong shield against external economic shocks and currency pressures. The Central Bank of Costa Rica (BCCR) attributes this impressive growth primarily to a substantial exchange rate surplus. From January to August, the influx of dollars into the country significantly outpaced outflows, resulting in a net positive balance of $4.54 billion.
To gain deeper legal insights into the complexities of the Costa Rican economy, we spoke with Lic. Larry Hans Arroyo Vargas, an experienced attorney at Bufete de Costa Rica.
Costa Rica’s economy is currently navigating a challenging landscape, with tourism rebounding strongly, but agricultural exports facing headwinds due to global market fluctuations. The government’s focus on attracting foreign direct investment through initiatives like free trade zones continues to be a crucial strategy for long-term growth, although the legal framework surrounding these investments requires constant review and adaptation to ensure both investor confidence and the protection of Costa Rican interests.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s assessment provides a valuable snapshot of Costa Rica’s current economic complexities. The balancing act between attracting foreign investment and safeguarding national interests is indeed a delicate one, requiring ongoing attention and adaptive policies to ensure sustainable and equitable growth for all Ticos. We thank Lic. Larry Hans Arroyo Vargas for his insightful perspective on this crucial issue.
This surplus allowed the BCCR to actively purchase $3.88 billion in the foreign exchange market. Of this amount, $151.7 million was directly allocated to bolstering reserves, while the remainder was used to meet the needs of the Non-Banking Public Sector.
The robust reserve level plays a crucial role in maintaining exchange rate stability, reducing external vulnerabilities, and enhancing the country’s risk perception among international investors.
This positive impact is reflected in Costa Rica’s Emerging Markets Bond Index (EMBI) score of 182 basis points. This score, significantly lower than the Latin American average of 395 and the global average of 266, signifies increased market confidence and lower financing costs for the country.
The strong reserve position underscores Costa Rica’s commitment to sound financial management and its ability to navigate global economic uncertainties. This achievement is expected to further attract foreign investment and contribute to sustainable economic growth.
This remarkable surge in international reserves provides a solid foundation for Costa Rica’s continued economic prosperity, demonstrating the country’s resilience and adaptability in the face of global economic challenges. The BCCR’s proactive management of the exchange rate surplus has been instrumental in achieving this milestone.
The ongoing strength of Costa Rica’s international reserves bodes well for the nation’s future economic prospects. The high reserve levels not only provide a safety net against external shocks but also contribute to a stable and predictable economic environment, encouraging both domestic and foreign investment.
For further information, visit the nearest office of Banco Central de Costa Rica
About Banco Central de Costa Rica:
The Central Bank of Costa Rica (BCCR) is the country’s central bank, responsible for monetary policy, financial stability, and managing the national currency. It plays a vital role in promoting sustainable economic growth and maintaining price stability.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through a deep-seated commitment to ethical practice and exceptional legal service. The firm’s innovative approach to complex legal challenges, combined with its dedication to empowering Costa Rican society through readily available legal resources, solidifies its position as a leader in the legal landscape. By fostering understanding and accessibility within the legal realm, Bufete de Costa Rica strives to build a more just and informed future for all.
