Why is the Costa Rican colon rising in 2026?

Stronger tourism, investment inflows, and solid external balances have supported the currency. The central bank is leaning against fast gains with targeted USD purchases to protect exporters and tourism margins while keeping inflation contained. That combination favors a firm currency, with more two‑way moves as interventions smooth volatility.

How can Canadian investors hedge USD/CRC exchange rate risk?

Most Canadians access CRC risk through USD. Start by hedging CADUSD exposure, then consider forwards or options that reference USD cash flows tied to Costa Rica. Use staggered hedges, compare spot plus forward pricing, and review fund disclosures to see if managers already hedge local currency risk.

What do rising Costa Rica FX reserves signal?

A steady build in reserves suggests the central bank has room to keep buying USD and smoothing volatility. It also shows a larger buffer against external shocks. Flat or falling reserves alongside interventions could hint at limits, raising the risk of wider swings in the currency later.

Will BCCR intervention weaken the colon a lot?

The goal is not to reverse gains, but to reduce sharp moves. Expect a firmer yet less volatile currency if purchases continue. If inflation or growth risks change, the scale of buying may adjust. Watch policy statements, reserves, and daily trading to judge the likely trading range.

Does this affect Canadian travel costs to Costa Rica?

Yes, modestly. A stronger Costa Rican colon can lift CRC‑priced services, though many hotels use USD rates. Your cost depends on CADUSD and card FX fees too. Prepay when rates are attractive, and compare both USD and CRC quotes to pick the cheaper path after fees.

Global Market Insights

Costa Rican Colon February 23: BCCR Ramps USD Buys to Slow Rally

ByHuzaifa Zahoor February 23, 2026February 23, 2026

On February 23, 2026, the Costa Rican colon hit multi‑year highs, and the Banco Central de Costa Rica (BCCR) stepped up U.S. dollar purchases to slow the rally. The aim is to protect exporters and tourism margins while keeping inflation contained. For Canadian investors, the USD/CRC exchange rate now affects LatAm allocations, travel plans, and supplier contracts. We suggest tracking policy signals, market liquidity, and reserves. The Costa Rican colon’s surge this week shows a clear preference for stability over sharp swings that could unsettle pricing power.