Dollar Sinks Below ₡450 in Costa Rica, Worsening Struggle for Expats and Tourists

The US dollar has continued its downward trend in Costa Rica, slipping below ₡450 again. The dollar closed yesterday at an average of ₡449.24 in Costa Rica's Monex foreign exchange market, down from ₡450.03 in the previous session.

This decline affects foreign residents who earn their income in dollars, as the same amount now buys fewer colones. For example, a $3,000 monthly pension or dollar-based income is worth roughly ₡1.35 million at today's rate, compared to about ₡1.49 million at the beginning of January.

The strong colón has also made Costa Rica more expensive for tourists, as they need more dollars to pay the same prices in colones. The Central Bank has occasionally stepped into the market when the dollar has fallen sharply, but there is no indication that the currency will make a major comeback soon.