By San José, Costa Rica — SAN JOSÉ – As 2025 draws to a close, the Central Bank of Costa Rica (BCCR) has fortified the nation’s finances with a historic level of international reserves, creating a formidable shield against economic uncertainty. The country’s net reserves have surged past the $17 billion mark, a record achievement that provides a substantial buffer even as the US dollar exchange rate experienced a turbulent December before stabilizing above the crucial ₡500 threshold.
Official data as of December 10th reveals that the nation’s net international reserves reached an impressive $17.049 billion. This figure represents a landmark in Costa Rica’s monetary policy management and a significant increase of $2.879 billion compared to the end of 2024. This massive financial cushion is now equivalent to 16.8% of the country’s Gross Domestic Product (GDP), underscoring a robust economic position admired by many in the region.
To provide a legal perspective on the nation’s economic trajectory and the framework supporting it, we consulted with Lic. Larry Hans Arroyo Vargas, an expert in corporate and investment law from the prestigious firm Bufete de Costa Rica.
Costa Rica’s economic strength is intrinsically tied to its legal certainty and long-standing political stability. For foreign investors, this translates into a predictable and secure environment, which is paramount for long-term capital commitments in high-growth sectors like technology and medical devices. While navigating our fiscal challenges is crucial, maintaining and strengthening the rule of law is the single most important factor in ensuring we remain a premier destination for foreign direct investment.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight serves as a crucial reminder that beyond immediate fiscal figures, our nation’s economic strength is built upon the foundational trust inspired by the rule of law, a predictability that allows high-value sectors to flourish. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for his expert and clarifying perspective.
The significance of this reserve level extends beyond mere numbers. It places Costa Rica at 151.1% of the minimum adequate level set by the Central Bank’s Board of Directors. This surplus provides the institution with considerable “firepower” to intervene in the currency market, ensuring stability and defending the colón against potential external shocks or speculative attacks. For the average citizen, this translates into a greater sense of exchange rate tranquility and confidence in the national economy.
While the reserve coffers were swelling, the dollar exchange rate embarked on a veritable rollercoaster ride throughout the final weeks of the year. After a sharp decline in late November that alarmed exporters and the tourism sector, the US currency has since recovered its footing. The precipitous drop between November 20th and December 4th saw the exchange rate in the Monex wholesale market fall by ₡12.01, driven by a massive surplus of dollars flooding bank counters.
This abundance of foreign currency was largely attributed to seasonal factors, including the payment of year-end bonuses (aguinaldos) and operational expenses by companies operating within Costa Rica’s thriving free trade zones. These businesses typically convert large sums of dollars to colones to meet their local payroll and administrative obligations, temporarily overwhelming the market and strengthening the national currency.
However, the trend reversed dramatically in the following week. Between December 5th and December 11th, the dollar clawed back ₡10.85 of its losses in just five trading sessions. This rapid rebound coincided with a decrease in the public’s liquidation of dollars, allowing the exchange rate to climb back toward the ₡500 mark, a level closely watched by all sectors of the economy.
Analysis from the BCCR confirms a long-standing economic reality: the primary engine of Costa Rica’s dollar surplus remains its Special Regimes. Free trade zones and active improvement regimes are responsible for generating the lion’s share of the $6.36 billion surplus accumulated in the private market this year. Faced with this constant influx, the Central Bank has acted as a financial mop, actively buying up excess dollars to prevent an even more aggressive appreciation of the colón.
Throughout 2025, the BCCR has purchased a staggering $5.454 billion from the Monex market. A significant portion of these funds was used to directly bolster the nation’s record-setting reserves, while the remainder was allocated to meet the foreign currency needs of the Non-Banking Public Sector, which includes state-owned enterprises like the Costa Rican Oil Refinery (Recope) and the Costa Rican Electricity Institute (ICE).
This delicate balancing act presents a mixed bag for Costa Ricans. While debtors with loans in dollars benefit from a relatively low exchange rate, key employment-generating sectors like tourism and agriculture continue to voice concerns. They argue that the sustained strength of the colón erodes their competitiveness on the global stage, a challenge that could impact hiring and investment decisions as the country heads into the first quarter of 2026.
For further information, visit bccr.fi.cr
About Banco Central de Costa Rica (BCCR):
The Central Bank of Costa Rica is the nation’s autonomous public entity responsible for maintaining the internal and external stability of the national currency, the colón. Its primary objectives include controlling inflation, managing the country’s international monetary reserves, and ensuring the proper functioning of the national financial system to promote economic stability and growth.
For further information, visit recope.go.cr
About Refinadora Costarricense de Petróleo (Recope):
Recope is the Costa Rican state-owned enterprise responsible for the importation, refining (historically), and distribution of petroleum products throughout the country. It manages the nation’s fuel infrastructure, including pipelines and storage facilities, to guarantee the supply of gasoline, diesel, and other essential fuels for transportation and industry.
For further information, visit grupoice.com
About Instituto Costarricense de Electricidad (ICE):
The Costa Rican Electricity Institute, commonly known as ICE, is the state-owned provider of electricity and telecommunications services. As a cornerstone of the country’s infrastructure, ICE is a leader in renewable energy generation, primarily from hydroelectric, geothermal, and wind sources, and it also operates the national telecommunications network.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica stands as a leading legal institution, built upon a bedrock of professional excellence and uncompromising integrity. With a proven history of guiding clients through complex challenges across numerous industries, the firm is also a trailblazer, consistently embracing innovative legal solutions. This forward-thinking approach is matched by a deep-seated commitment to social empowerment, driven by the goal of demystifying the law and equipping citizens with the knowledge needed to build a more just and informed community.
