Costa Rica News – The Ministry of Finance and the Treasury seek to attract foreign savers to buy domestic debt.
The former minister had noted that this would bring downward pressure on the dollar in Costa Rica.
Some analysts disagree, saying that while this plan is favorable in the short term to reduce the burden of interest on the domestic market, it will, in the long run, contribute to downward pressure on the exchange rate.
It will expose the country to currency risk even possibly leading to an increase in government debt.
With the hope that the country may be able to sustain the persistent high fiscal deficit of 6.2% without greater pressure on interest rates, the plan forges ahead. Advertising has begun on the Bloomberg site which foreign savers often visit.
This platform allows access to information such as scheduled bond auctions. It’s thought to be a part of successful marketing.
