FX_IDC:USDCRC U.S. DOLLAR / COSTA RICAN COLON
Its been almost a year since it was so low, in the local economy you are suppose to be happy as with less hard earned colones you will get more dollars and given that it is almost 50 colones difference its something like a 10% discount in dollars. From the financial sector that the country benefits the most which are closely related with tourism there is a downside as tourists will see their funds not allowing them to do as much as before, I can also see how the down fall should push the prices down in the future if it keeps going like that as many other things that drives economy should follow as it is fuel. The only problem that I'm seeing from this is that it can be sustained over time as it most likely will come back to _normal_ levels which are for now at 600 ish colones. The advantage of earning USD is the is controlled most likely by the exchange rate which for now has been playing against me as I get the same amount of USD per month but they are worth less colones a month. I tend to save USD for the long term which means this is a very unique opportunity to see this 10% discount and generally speaking I don't expect the colones appreciate over time because it can only mean 1 of the following things: there will be a recession from the US or the country economy is doing amazing, which to be honest the first is the most likely scenario to happen.