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From your personal Experiences, Historically do you think that the Colone increases or decreases against the value of the US dollar. When we were there a few months back ,we did a few Colone CD investments and the Colone was at 490-496

As of today, looks like it is at 548-558

I have done some research but would like to hear from you here.

Need to make some decisions before end of October renewals.

Thanks in advance.

Tom/ Laura

Edited by luv2fish
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From your personal Experiences, Historically do you think that the Colone increases or decreases against the value of the US dollar.

Generally, over the years the colón, in my experience, has seemed to decrease slightly against the dollar. But when the dollar has strengthened, so have the prices for things in CR, to accommodate that strengthening. Of course presently there is at least some uncertainty as to what is going to happen with the dollar, so we must wait and see.

 

Need to make some decisions before end of October renewals.

Tom/Laura, could you please clarify what it is that you mean by 'renewals'?

 

Cheers!

 

Paul M.

==

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Generally, over the years the colón, in my experience, has seemed to decrease slightly against the dollar. But when the dollar has strengthened, so have the prices for things in CR, to accommodate that strengthening. Of course presently there is at least some uncertainty as to what is going to happen with the dollar, so we must wait and see.

 

 

Tom/Laura, could you please clarify what it is that you mean by 'renewals'?

 

Cheers!

 

Paul M.

==

They (CDS) come up for renewal and we need to decide how to invest funds again. It will still be at Banco Nacional. Just deciding what is best to do.

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They (CDS) come up for renewal and we need to decide how to invest funds again. It will still be at Banco Nacional. Just deciding what is best to do.

 

Nobody knows what will happen. If they tell you they do they are con artists.

 

Your safest bet is probably to make 1/2 in colones and 1/2 in $. Actually you might want to do 1/3's and do some euros while you are at it.

 

Diversification is generally considered your best friend in times of trouble.

 

Buena Suerte.

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I was in a Banco Popular just this morning, and saw that the interest rate being offered for the colon is very significantly higher than for the dollar (actually, very attractive).........and, as of today, the rate to buy colones was 559.50/dollar...........I can see where it would be attractive to invest in a colon account, and would think that the longer term interest rates are what make it attractive.....however, what you are betting on is whether or not the colon might devalue more over time, no?

Edited by jdocop
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I was in a Banco Popular just this morning, and saw that the interest rate being offered for the colon is very significantly higher than for the dollar (actually, very attractive).........and, as of today, the rate to buy colones was 559.50/dollar...........I can see where it would be attractive to invest in a colon account, and would think that the longer term interest rates are what make it attractive.....however, what you are betting on is whether or not the colon might devalue more over time, no?

Thats what we did and we did not do good this time. So trying to make better decision in late October. ;)

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When we were trying to decide whether Costa Rica would be a good move for us, we did a study of price vs exchange rates for the 10 years before (1995-2006). Bottom line was that the exchange rate followed the price (sort of cost-of-living) inflation, but lagged about a year and a half. The exchange rate also followed the CPI, but started to fall behind at yr 2000.

I did a quick look back at our data, and unfortunately can't find info on where we got our data. I remember they were online official sites. Also lost exact meaning of "CPI" (but probably a quick search would give that).

Julie

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When we were trying to decide whether Costa Rica would be a good move for us, we did a study of price vs exchange rates for the 10 years before (1995-2006). Bottom line was that the exchange rate followed the price (sort of cost-of-living) inflation, but lagged about a year and a half. The exchange rate also followed the CPI, but started to fall behind at yr 2000.

I did a quick look back at our data, and unfortunately can't find info on where we got our data. I remember they were online official sites. Also lost exact meaning of "CPI" (but probably a quick search would give that).

Julie

 

I think CPI is "consumer price index," sort of the inflation measure.

 

I actually was going to go in to the bank today to cash in a CD in colones, on which I lost a good 10%. I switched a little to colones given the dollar's global decline and then the huge decline of the dollar against the colone last November, but guess what? In April the colone/dollar did an aboutface. The papers said that a few speculators were causing all this. I don't know, but it is a small economy, and a few flush players can influence things.

 

The overall trend is for the dollar to gain. It's probably the trend to keep in mind. Playing the colone seems to be an insider's game.

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I think CPI is "consumer price index," sort of the inflation measure.

 

I actually was going to go in to the bank today to cash in a CD in colones, on which I lost a good 10%. I switched a little to colones given the dollar's global decline and then the huge decline of the dollar against the colone last November, but guess what? In April the colone/dollar did an aboutface. The papers said that a few speculators were causing all this. I don't know, but it is a small economy, and a few flush players can influence things.

 

The overall trend is for the dollar to gain. It's probably the trend to keep in mind. Playing the colone seems to be an insider's game.

Thanks Kenn
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