Why did the colon lose so much ground against the dollar last week?

Question

Why did the colon lose so much ground against the dollar last week?

Answer 1

To add to the above answer, Costa Rica is also suffering from lack of tourism (a major source of revenue) and it really hindrance the high season this year.   In some areas, tourism was down 80% due to the rising gas prices (people just are not traveling) and other contributing factors [like an unstable economy, supply in demand] that has caused (like here in the US) an increase in just about everything. Costa Rica’s monetary system is based on the US dollar, so whatever changes in the US will affect Costa Rica.

For example, on a trip in April to Quepos, normally at 8:00 am, most of the sport fishing boats were out. In April, the harbor only had a few boats out. Some Captains were lowering their daily fees, and in some cases, dropping them down to fuel costs, plus $100/day and tip.  The monetary uncertainty in any country will cause problems.

Answer 2

Supply and demand is the simple answer.  There are too many  people needing dollars and not enough to go around.  If you need to check money exchange rates, go to the TicosLand website.

Answer 3

Long story but basically  Costa Rica has debts that need to be paid in US dollars.  In the tourist season there are lots of $ here.  Now is low season and LESS $ available  therefore they are worth more because the gov't needs them.  That's the basic idea anyway.  It's much more complicated.