Dollar Hits Record Low Against Colón, Squeezing Tourism Industry

The US dollar has hit a record low against Costa Rica's colón, falling to ₡447.93 per dollar in the Monex foreign exchange market, according to data from the Central Bank of Costa Rica. This is the lowest level since December 6, 2007, when the bank began tracking the currency pair.

The previous record had been set just one day earlier at ₡448.17 per dollar. The decline has continued in the rates offered by banks and other financial institutions, with the Central Bank's official reference rate for buying dollars at ₡444.22 and selling them at ₡450.06.

The strong colón is affecting foreigners living in Costa Rica who receive pensions or salaries in US dollars, as each dollar now buys significantly fewer colones. For example, someone exchanging $2,000 would receive about ₡896,000, down from around ₡994,000 at the start of the year.

The tourism industry is also concerned about the exchange rate, as hotels and tour operators frequently receive revenue in dollars while paying expenses in colones. Costa Rica received over 2 million visitors through July, but tourism leaders warn that rising visitor numbers do not necessarily translate into greater profitability due to the squeeze on operating margins.