Costa Rica Economy and Currency

 

Economy:

Ø  Economy is primarily based on agriculture, tourism, and electronics exports

Ø  Poverty has greatly decreased in the past 15 years

Ø  Costa Rica’s political stability and high education levels attracts foreign investors

Ø  Tourism brings in great amounts of foreign exchange

Ø  Costa Rica’s agricultural sector has been hurt by low prices in coffee and bananas

Ø  Due to rises in the price of imports, labor market rigidities, and fiscal deficits the reduction of inflation has been a difficult problem

Ø  Costa Rica is in need of a tax system reform and a reform for its pattern of public expenditure

Ø  Costa Rica is the only signatory to the US-Central American Free Trade Agreement (CAFTA), this document has not been ratified

 

Currency:

Ø  The Colón is Costa Rica’s currency

Ø  The Colón is issued in increments of 50, 100, 500, 1000, 5000

Ø  U.S. dollars are exchanged most easily with the colón

Ø  When traveler’s checks are converted, the amount given is usually a slightly lower rate than currency

Ø  Some banks won’t accept traveler’s checks

Ø  American Express traveler checks are widely accepted around Costa Rica

Ø  Travelers should bring receipts for travelers checks

Ø  In better hotels, stores, and restaurants major international credit cards such as American Express, Visa, MasterCard, and Diners Club are accepted

Ø  Smaller hotels and businesses may require local currency

Ø  San Jose has ATMs that will give cash advances in colónes on Vista cards by using U.S. PINS

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