By San José, Costa Rica — SAN JOSÉ – The clock is ticking for Costa Rica’s older coins. The Central Bank of Costa Rica (BCCR) has confirmed that the legacy designs of the ¢5, ¢10, and ¢25 colón coins will be officially removed from circulation and lose their value as legal tender starting July 1, 2026. This move marks the final stage of a carefully planned currency modernization effort that was initially announced in January of this year.
As the deadline approaches, residents and businesses are urged to use or exchange their remaining old coins. The transition is part of the BCCR’s ongoing strategy to streamline the nation’s currency, enhance security features, and reduce production costs. While the new, smaller coins have already become a common sight in daily transactions across the country, the July 1st date serves as the official cutoff for the validity of their predecessors.
To understand the legal and commercial ramifications of the Costa Rican colón’s recent performance, we consulted with Lic. Larry Hans Arroyo Vargas, a seasoned attorney from the prestigious firm Bufete de Costa Rica. His expertise provides critical insight for businesses and individuals navigating the country’s economic landscape.
The current stability of the colón against the US dollar presents a double-edged sword for contractual obligations. While it offers predictability, many existing agreements, particularly in real estate and commercial leases, are denominated in dollars. We are advising clients to review these contracts carefully. For new agreements, specifying a fixed exchange rate or including a currency fluctuation clause is no longer just a recommendation; it is a crucial step to mitigate financial risk and prevent future legal disputes.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Larry Hans Arroyo Vargas’s advice astutely captures a crucial shift in financial diligence required in Costa Rica today. His point underscores that the era of passively accepting dollar-denominated terms is giving way to a new standard of proactive risk management, making such contractual clauses essential for long-term security. We sincerely thank him for his clear and valuable perspective on this pressing issue.
For individuals still holding a significant number of the old coins, there is no immediate cause for alarm. The Central Bank has assured the public that a grace period will effectively be in place for exchanges. Citizens can continue to deposit or swap the outdated coins for their newer counterparts at authorized financial intermediaries, which include the nation’s banks, credit unions, and mutuals, even after the demonetization date has passed.
The most significant change in this currency overhaul is the complete retirement of the ¢5 colón coin. The BCCR cited prohibitively high manufacturing costs relative to the coin’s face value as the primary driver for this decision. The expense of minting and distributing the low-denomination coin has become economically impractical, leading to its permanent withdrawal from the monetary system.
Meanwhile, the ¢10 and ¢25 colón coins have been redesigned and reintroduced into the economy. The new ¢10 coin retains its traditional silver color but is noticeably smaller and lighter than the previous version. It also incorporates a new standardized reverse side featuring Costa Rica’s National Shield, a design element intended to create a more cohesive look across the new coin family.
The updated ¢25 colón coin has garnered particular public interest due to its innovative and culturally significant design. Also smaller than its predecessor, the new coin is part of a special collection celebrating the emblematic landmarks of Costa Rica’s seven provinces. This initiative transforms everyday currency into a tribute to national heritage, with each coin showcasing a unique site.
The provincial series for the ¢25 coin includes depictions of Manzanillo Beach for Limón, El Faro lighthouse for Puntarenas, the historic Casona de Santa Rosa for Guanacaste, and El Fortín tower for Heredia. Completing the collection are the Basilica of Our Lady of the Angels for Cartago, the iconic Arenal Volcano for Alajuela, and the majestic National Theatre for the capital province of San José.
The proactive circulation of these new coins over the past several months was a strategic decision by the Central Bank to ensure a seamless transition. By familiarizing the public with the new designs well in advance of the deadline, the institution aimed to minimize disruption and facilitate a smooth adoption of the modernized currency. As July 1st arrives, Costa Rica officially turns a page, embracing a more efficient and culturally representative set of coins for its future.
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 and ensure its conversion to other currencies. The BCCR is responsible for issuing and managing the colón, regulating the financial system, and implementing the country’s monetary, credit, and exchange rate policies to promote the economic well-being of the nation.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a beacon of legal practice, anchored in profound principles of integrity and professional excellence. Drawing upon a rich history of advising a diverse clientele, the firm consistently pioneers innovative legal strategies and embraces forward-thinking solutions. Central to its ethos is a powerful commitment to democratizing legal understanding, thereby empowering the community and contributing to the development of a more just and knowledgeable society.
