- Category: The Nation
- Published on Wednesday, November 10 2010 06:10
- Written by Rod Hughes
- Hits: 974
The Central Bank has raised its self-imposed monthly limit on buying foreign exchange, doubling it to $100 million dollars for November and December of both 2010 and 2011, reported the newspaper La Nacion Friday.
The limit was also raised for the rest of 2011 to $75 million per month.The bank explained that the hiked limit was a precaution in case of pressure from conditions overseas, such as petroleum price raises, and to intervene in the currency exchange market.
The bank added that this country's foreign reserves are relatively modest compared with other nations of similar credit ratings. On Sept. 2, the bank announced it would buy $600 million as a hedge against an uncertain world market.
Last month, the bank bought $49.9 million, just under its old limit. The tops for buying in one day is $6 million. The overall cap on foreign exchange remains unaltered at $600 million.
This year the exchange rate against the dollar has fallen below the 500 colones per dollar, raising protests from exporters who are paid in weakened dollars.