Low Dollar
Lowers Prices Of
Some Goods And
Services
The low dollar
exchange rate is
showing signs of
reducing the
cost of goods
and services,
like the drop in
the cost of the
tolls on the San
José - Caldera
highway that
takes effect
today, a
reduction in the
price of
gasoline this
month and the
cost of
vehicles, like a
Toyota Yaris
that last year
cost ¢11.281.060
colones, today
the same vehicle
sells for
¢9.967.458
colones.
The dollar
exchange rate
dropped over the
past few months
from an average
of ¢585 colones
to one US dollar
for the sell to
today's ¢505, a
drop of ¢80
colones or
13.6%.
The prices of
some products at
the local
supermarkets has
also dropped,
particularly on
imported goods,
or Amnet's cable
television and
internet and
ICE's long
distance
calling, items
that are quoted
in dollars but
billed in
colones on the
monthly
statement.
Of course that
benefit is most
for those
earning in
colones. Those
with an income
in dollars,
although the
price may seem
to have dropped,
it is really the
same.
For example,
Amnet's Internet
Plus costs
us$49.95 per
month. If
earning in
colones, at the
beginning of the
year that bill
came to ¢29.220
colones, using
an exchange rate
of ¢585. Today,
the same bill
comes to ¢25.224
or a drop of
¢3.996 colones.
But if the
income is in
dollars, the
cost of the
service is still
$49.95, just
having to use
less colones to
pay, but get
less colones on
the exchange.
Although there
have been many
cases of lower
prices due to
the lower
dollar, that is
not always the
case.
Economists say
the conditions
depend on the
market for each
type of product
or service.
But, one thing
is for sure,
when the dollar
increase prices
are quickly
raised, while
when the dollar
drops, the drop
in prices is
slow in coming.
This was
confirmed by the
president of the
Banco Central de
Costa Rica (BCCR),
Francisco de
Paula Gutiérrez,
who stated
exactly that,
based on an
analysis by the
Central Bank
called "efecto
traspaso".
The bank
president warned
that if consumer
purchases
increases,
internal prices
may begin to
rise and dim the
effect of price
reductions of
the low dollar.
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