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Dollarization of the CR economy and buying colones

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TICR
  11/10/2015 13:31 EST

Today's Central Bank exchg. rate buying colones with USD's is 528. If the true exchange rate were ever put into effect it would probably somewhere between 600 and 700 colones to the U.S. dollar. For expats, Costarricenses and tourists, Dollarization of the economy in total, like Panama, would be the best route to follow in the long term for CR. TOURISTS: try to avoid changing dollars for colones in the airport. The Global Exchange office located in San Jose's Juan Santamaria International Airport is only offering an exchg. rate of 472. Bring some $1.00, $5.00, $10.00 and $20.00's which should work for you until you can get to a regular bank and change dollars to colones with your passport for the best rate.

canadaMan
  11/11/2015 10:37 EST

Sorry, but this is not a good idea. Tying a smaller economy to a much larger one by using the same currency is one of the reasons for the problems in Europe. If Greece had its own currency it could devalue it. It doesn't so it can't. Canada is currently devaluing its currency to cope with a slowing economy. It is a proven tactic.

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TICR
  11/11/2015 11:07 EST

Since 1904, Panama has benefited from the stability of the US dollar, as the backbone of the global financial system. For instance, this means that Panama doesn't have to worry about out-of-control inflation, as a result of changing exchange rates. This makes Panama a more attractive investment and tourism destination. The fact that Costa Ricans earn their salaries in colones and are paying dollar loans and mortgages, which does exist to a large extent, is dangerous for the banking industry and the economy in general. This is probably the reason that the Central Bank has been manipulating the colon/dollar exchange rate for the past 4+ years.

richardschlinder
  11/11/2015 11:10 EST

The U.S. and the European Union work on different rules which makes it a different game completely.
Since the trading laws and C.R. constitution are similar,it could work to get C.R. under dollar based economy.
If a state goes bankrupt in the U.S.,laws are set up to cover the loses and the state will be liable for repayment.
If Greece goes bankrupt, the E.U. does not have these laws to govern the loses,so greece was left with beggar thy neighbor situation. Everybody had to get involved with how to solve the debt problem because several other countries were looking at the same default problem. When the E.U. looked around,they saw economic problems everywhere. What the E.U. tried to do is salvage the EURO more than trying to help Greece.

richardschlinder
  11/11/2015 11:13 EST

Excellent presentation TICR.
History is our teacher.

PacificLots
  11/11/2015 15:26 EST

Costa Rica will always control the rate between the dollar and the colon, you could call their currency "dollarized" due to a couple of factors. First of all their number one source of income is tourism and mostly from North America. Second, many may not realize that 25 of the TOP FORTUNE 50 companies in the world have manufacturing facilities in Costa Rica. A big disruption in the relation of the dollar to the colon would make exporting goods manufactured there very unstable. it would also make it more difficult to attract direct foreign investment. As an international economics major with 7 years of business school, Costa Rica has much to lose if the relationship between the dollar and the colon were to change very much.

Steve Linder
www.PacificLots.com
The largest and oldest development in Costa Rica. See our website for details on our 4 day all inclusive property tours.

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TICR
  11/11/2015 17:14 EST

The U.S. Government gave a total of $12,321,257 to Costa Rica in 2012:

The aid was broken down in the following manner:
Economic
Development Assistance: $588,359
Economic Support Fund/Security Support Assistance: $18,072
Global Health and Child Survival: $1,501
Narcotics Control: $42,222
Nonproliferation, Anti-Terrorism, Demining and Related: $385,380
Other Active Grant Programs: $1,615,598
Other USAID Assistance: $2,472,696
Other USDA Assistance: $2,000
Peace Corps: $2,655,429

Military
Military Assistance, Total: $4,540,000
Source: http://us-foreign-aid.insidegov.com/q/41/1590/How-much-money-does-the-U-S-give-to-Costa-Rica
U.S. spent $35 billion on foreign economic aid last year.
Source: http://edition.cnn.com/2015/11/11/politics/us-foreign-aid-report/index.html

Milmias
  11/16/2015 17:46 EST

@ Steve Pacific lots

"Second, many may not realize that 25 of the TOP FORTUNE 50 companies in the world have manufacturing facilities in Costa Rica." - Steve Linder Pacific Lot

First of all it's the Fortune 500 companies.

I could not find anything on the first couple of Google pages called the fortune 50.

If you meant half the top 50 of the Fortune 500 companies are manufacturing here in Costa Rica - well sorry mister economics major (did you have a minor in B.S.) - many of these companies have no manufacturing anywhere.

2014 list (almost identical to 2015)
1 Wal-Mart Stores www.corporate.walmart.com
2 Exxon Mobil www.exxonmobil.com
3 Chevron www.chevron.com
4 Berkshire Hathaway www.berkshirehathaway.com
5 Apple www.apple.com
6 Phillips 66 www.phillips66.com
7 General Motors www.gm.com
8 Ford Motor www.ford.com
9 General Electric www.ge.com
10 Valero Energy www.valero.com
11 AT&T www.att.com
12 CVS Caremark info.cvscaremark.com
13 Fannie Mae www.fanniemae.com
14 UnitedHealth Group www.unitedhealthgroup.com
15 McKesson www.mckesson.com
16 Verizon Communications www.verizon.com
17 Hewlett-Packard www.hp.com
18 J.P. Morgan Chase & Co. www.jpmorganchase.com
19 Costco Wholesale www.costco.com
20 Express Scripts Holding www.express-scripts.com
21 Bank of America www.bankofamerica.com
22 Cardinal Health www.cardinal.com
23 International Business Machines www.ibm.com
24 Kroger www.thekrogerco.com
25 Marathon Petroleum www.marathonpetroleum.com
26 Citigroup www.citigroup.com
27 Archer Daniels Midland www.adm.com
28 AmerisourceBergen www.amerisourcebergen.com
29 Wells Fargo www.wellsfargo.com
30 Boeing www.boeing.com
31 Procter & Gamble www.pg.com
32 Freddie Mac www.freddiemac.com
33 Home Depot www.homedepot.com
34 Microsoft www.microsoft.com
35 Amazon.com www.amazon.com
36 Target www.target.com
37 Walgreen Co. www.walgreens.com
38 WellPoint www.wellpoint.com
39 Johnson & Johnson www.jnj.com
40 American International Group www.aig.com
41 State Farm Insurance Cos. www.statefarm.com
42 MetLife www.metlife.com
43 PepsiCo www.pepsico.com
44 Comcast www.comcastcorporation.com
45 United Technologies www.utc.com
46 Google www.google.com
47 ConocoPhillips www.conocophillips.com
48 Dow Chemical www.dow.com
49 Caterpillar www.caterpillar.com
50 United Parcel Service www.ups.com

Steve - how many of the above manufacture in Costa Rica? 50% you say. I say BS. Very few if any.


Statistics are often misquoted and manipulated for sales purposes.

Those reading this forum should realize that many who post here have a financial interest in selling you on CR. Those who do so shamelessly - I call CR Pimps.

CR is not for everybody - so watch out for the pimps. Most don't care if you are happy with your purchase or not - they could care less if you and CR are a good fit.

ILuvCR
  11/16/2015 19:01 EST

Wow! can you say "too much time on your hands?"

Pura Vida!

PacificLots
  11/16/2015 20:45 EST

Hey Milmias,

Forgive me for my mistake, I realize tha I should have said that 25 of the top Fortune 50 have operations in Costa Rica. And just for your information, try any other search engine than Google, perhaps Bing, yahoo or MSN and the words Fortune 50 and you will see that it's a list that Fortune Magazine came up with, often called the most admired top 50 companies, but perhaps you've never heard of it since you apparently live under a rock somewhere and only know how to use Google apparently and think anything on Google is proof that nothing else exists.. I should also point out that the list does change and perhaps this year is different from last as to who those companies are but Costa Rica is still home to 25 of the top 50 on the list. Yes I do have a BS, a bachelor of Science in Business. No I am not a troll and though I do in fact sell land in Costa Rica, you can look through my posts and find that I try to offer good information on this forum, not just insults and slander that people like you appear to just have done to me. Get a grip... I am not a troll, I admit there are trolls on this forum, I am not one of them. The question was specifically about currency valuation, colon versus the dollar and dollarization. By the way, my answer was spot on. I suppose you think you should moderate and surpress comments from people like me that do have MBA's in International Economics so we can get answers from people like you, who've never heard of the Fortune 50. You clearly have too much time on your hands to just insult people that are trying to add good content addressed at the questions being asked on the forum. Please tell me how your answer helped? I suppose being a Keynote Speaker for over 10 years for a number of organizations including AARP, International Living, Boomers Abroad and Escape Artist makes me less qualified to answer than you. Sorry, but no, maybe you should check your ego, or my facts, before you put your foot in your mouth.

Steve Linder

ILuvCR
  11/16/2015 20:54 EST

Right on Steve, this person is a legend, in her own mind. She's outstanding in her field, in fact that's where they found her out standing in a field!

Pura Vida!

William RussellWilliam Russell
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William Russell's private medical insurance will cover you and your family wherever you may be. Whether you need primary care or complex surgery, you'll have access to the best hospitals & doctors available. Unlike some insurers, we also include medical evacuation and mental health cover in our plans (except SilverLite). Get a quote from our partner, William Russell.

William RussellWilliam Russell

William Russell's private medical insurance will cover you and your family wherever you may be. Whether you need primary care or complex surgery, you'll have access to the best hospitals & doctors available. Unlike some insurers, we also include medical evacuation and mental health cover in our plans (except SilverLite). Get a quote from our partner, William Russell.
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Milmias
  11/17/2015 09:38 EST

@ Steve linder

Why don't you write what you mean.

Manufacturing is production. Operations can be almost anything like a kiosk in a mall - That is a huge difference representing thousands of jobs.

No small mistake.

BTW - Was that a mistake or a misrepresentation. Only you know that.

So when you write falsehoods and then criticize others for correcting them/you - it is you sir that need to leave your ego at the door.

ILuvCR
  11/17/2015 09:45 EST

thank you professor! Steve Linder has forgotten more about Costa Rica than I'm pretty sure you will ever know!

Pura Vida!

Milmias
  11/17/2015 09:53 EST

@ Steve Linder

Some one form you organization once said in a seminar that you could get a heart transplant at the hospital in Cortez.

And yes you could! But I don't know about the survival rate. -

That is a clue as to why I am skeptical. If you are an old guy with white hair it might have been you.

Costa Rica is full of BS sales man. I just like exposing them. They damage people because they sell real estate to people that have no business living here - because they are not a fit - and become disillusioned and go back home stuck with a piece of property they have to dump at half of what they paid for it - because some salesman "this" when he should have said "that."

canadaMan
  11/17/2015 10:39 EST

@Milmias,

I also like to see those who are spreading lies or falsehoods exposed, but the best way to do it is with facts. As soon as you turn it into a personal attack you lose credibility with a large percentage of those reading this forum.

Ask for proof, or if you have some, provide links that expose lies or false information. Everyone likes to see that. Exposing lies is one of the good things about the internet.

People hiding anonymously spewing anger is one of the bad things about the internet.

Give us facts or ask for facts.

Cheers!

ILuvCR
  11/17/2015 10:40 EST

mil, dude

every few months some yahoo like your self comes along, I see that you joined here less than a month ago, they put themselves out there like some kind of expert on Costa Rica. They inevitably make some stupid and outrages comment like our Caribbean coast is "scum" or any one too positive about our country must be a "pimp".

When they get called on their stupidity they of course fall back on the forum "bullies" accusation.

Why they feel compelled to start a fight with the established contributors I don't know, makes them feel a little bit smarter or the attention it brings makes them feel a bit less lonely?

The good news is that they always play out and then disappear from the forum, probably moving on to the next to stink it up there as well?

Que tenga un buen dia! if that's possible for you?

PacificLots
  11/17/2015 11:50 EST

Milmias - Gues you just need to make stuff up when you are called on the carpet for your errors. Have you ever seen the hospital in Cortez? They'd no sooner do a heart transplant there than you could get one at Walmart. I've been so careful to supply good information on this forum and as a speaker that you seem to be on Hopium if you think you can tarnish my reputation.

Here's a link to the information I provided on our website about healthcare in Costa Rica, stuff I write by the way, paste it into your browser and check it please. http://www.pacificlots.com/healthcare-costa-rica I've had lots of personal experience with both the public and private healthcare system in Costa Rica at places like the Hospital de Osa, Clinica Biblica, La Catolica and the Caja Hospital in Alajuela, including orthapedics, emergency care, wellness care, colonoscopy, blood work, urinalysis, an EKG, eye exam, stress test, bone denisity scan, ultrasounds, X-rays, procedures by an ear, nose and throat specialist and more. I am also the only spokesperson for our organization, the only speaker, the only presenter so not sure who you think you'd seen but you might want to check your glasses and your facts. You can find my phone number, email address and name on our website while you hide behind your alias - Milmias. Not sure where you live or anything else about you... Feel free to contact me directly if you want to fact check any of your statements, I'll be glad to defend myself and explain my statements. Have a great day.

PacificLots
  11/17/2015 12:12 EST

Mil - here is a link to my picture so you can see if I'm the old guy with white hair you think you are talking about. http://www.pacificlots.com/sales-team
If I am, please let me know the "seminar" you think you heard me say that you could get a heart transplant at Cortez at, we record nearly all of our seminars so I could send you the file and let your memory improve as to what might really have been said. The internet is a powerful tool, Powerful enough that we don't try to sell snake oil, make stuff up or mislead people. My tours are 4 days long simply to provide enough time for people to decide for themselves if what we are selling is for them. I make sure everyone on our tours gets to meet expats, prior clients and others in our area to talk about both the good and the bad. We also have no sales presentation on any of our tours, never ask for an order, never try to close anyone. I like to sleep well at night, have done this job for over 10 years, believe in Karma and try to be a good conduit of information for everyone. In fact on my blog I have presented the good and bad of a bunch of countries, Ecuador, Panama, Nicaragua, Belize, Mexico, etc. I was a keynote speaker last year in 7 countries and likely know more about expat living than most. I also own properties in multiple countries and am currently building 6 rental properties in our developments. Did I mention that I am not the developer, rather I am merely a client who was asked to help with sales. I've made more money buying and selling lots in our developments than in my day job, have recently bought the most expensive lot in the development ($300,000) and now have plans in hand to build 6 rentals. If I did not believe in what I am selling, I would not likely invest my own money there, would I? Not sure what else you know about me but I grew up in Cambridge, Massachusetts, studied international business both as an undergrad and graduate student at Northeastern University in Boston. I live part of the year in Key West, FL, part on a private island off Salem, MA and have a bunch of property in the southern Pacific region of Costa Rica. I have no debt, no mortgages and was born poor and grew up in the projects in Jamiaca Plains in Boston with a single mom. My mom accomplished so much in her life that the Boston Globe did a full page "feature obituary" on her. My sister is a nuclear chemist with a PhD from MIT in Cambridge. You might want to pick on someone else if you want to win at your slander.

Milmias
  11/17/2015 14:25 EST

Must have hit a nerve.

This is why people come and go on this forum. Loaded with misinformation and salesmen.

PacificLots
  11/17/2015 14:44 EST

Milmas - Can you point out what good information you've provided toward the question asked in this post topic?

ILuvCR
  11/17/2015 15:38 EST

mil, A.M.F!

TICR
  11/23/2015 10:28 EST

Annually, $600 million dollars in remittances is sent from the US to Costa Rica. In a study conducted in Perez Zeledon it was found that 58.1 percent of households recieve remittances at least once a month. This money often covers food, education and health. Between 1970 and 2010 the number of Costa Ricans migrating to the United States has been on the rise.
It went from 16,691 to 126,418, according to the Center for Research on Culture and Development.
Source: costaricantimes.com

TICR
  11/27/2015 10:59 EST

According to an article on amcostarica.com this morning, the chief economist at the Banco Central, Roger Madrigal López, will talk to Democrats Saturday about the bank's exchange rate policy. The buy/sell rate today is 526.44/538.86 colons, some four colons lower than a year ago. The exchange rate is of importance to expats because many receive funds from outside the country. The main beneficiary of the artificial exchange rate is the central government which collects taxes and other funds in colons but has to pay for its crushing international debt in dollars. Time/place; 9:30 a.m. Saturday at the Holiday Inn Aurola in downtown San Jose. Reservations are requested at [email protected]

montanaboy57
  12/10/2015 11:37 EST

Well, that was a refreshing MMA match I didn't have to pay for. I'm trying to get information on becoming an expat not a referee. Give each other your person email address and have it out. Just fact based info here please.

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