Costa Rica's next president wants narrower currency band
Costa Rica's next president wants narrower currency band
By Alexandra Alper
SAN JOSE Tue Apr 8, 2014 7:08pm EDT
(Reuters) - Costa Rica's president-elect wants to see the national currency trade in a narrower band to avoid volatility that has sent it on a roller coaster ride over the last few months, the center-left former diplomat said.
Costa Rica's colon, which trades in a band set by the central bank that is currently between around 500 and 825 colones per dollar, is down 9 percent this year, after firming in December.
The rollback of stimulus measures by the U.S. Federal Reserve, which had boosted demand for risky emerging market assets, has hammered the currency.
"The first thing is to flatten the (trading) bands. That is fundamental," President-Elect Luis Guillermo Solis told Reuters in an interview. "We want smaller bands to allow for less aggressive fluctuations."
More:
http://www.reuters.com/article/2014/04/08/us-costarica-election-idUSBREA3729R20140408?rpc=401