Once again I´m reading about the U.S. dollar-colon exchange rate. After 15 years of living in Costa Rica and reading about how it depends on what group your are in as to which side you come down on the rate is pure basura! The stronger the Costa Rica colon, the better it is for ALL Ticos.
It´s clear, complaining about the rate, the hotel chamber is way off the mark and using the estimated job losses is unpersuasive. Costa Rica´s tourist rates are directly in response to the well-blogged breakdown in all aspects of society. Crime, infrastructure, high inflation and changing attitudes are totally the cause of the lower tourist numbers and their spending. It is horrific to see a small group of folks wanting to punish an entire population in the belief that 575 colons per U.S. dollar will improve their bottom line. I am sure a large portion of the Hotel chamber are North Americans. It isn´t possible Tico owners would draw that conclusion.
Costa Rica is a place that imports 90 percent of everything she needs to support her population. The stronger the colon, the better it is for all her citizens. It is 110 percent false that a stronger U.S. dollar will save jobs. Recently I read in a letter to A.M. Costa Rica that said Costa Rica should drop the colon in favor of the U.S. dollar. A country loses its sovereignty when she can´t keep her own currency. This entire world is now 100 percent using the fiat currency system and to lose the ability to print their own currency means they have no control of their own destiny. Better the Ticos adopt the Chinese yuan. As time goes by the yuan will be fully international in scope, and China will shortly overtake the U.S.A. Then the U.S. dollar reserve status will be in jeopardy.
15 years back when I moved to Costa Rica, the colon was in the mid 200s v. the U.S. dollar. Now, Costa Rica is-has become more expensive to live in then even the U.S.A.! Expats are leaving Costa Rica in droves for Panama and back to the U.S.A.
Just reading what the government is currently planing to try to raise funds should show all the danger in a stronger dollar. Imagine what happens to the foreign investor if the colon drops to 575 against the U.S. dollar! The attractive interest rate gets wiped out by the conversion. If the colon should be collared at 400, the Ticos would see their cost of living improve greatly. And, truthfully, it would have no effect on tourism. Tourists would still be happy getting 400 to one dollar if the costs of everything would stop soaring and there was value in the goods and services. Currently there is not !
San Isidro el General