Costa Rica international reserves near record high at $20.9bn
Updated
Updated · The Tico Times · May 4
Costa Rica international reserves near record high at $20.9bn
5 articles · Updated · The Tico Times · May 4
Central Bank data showed net reserves at $20.9079 billion on 29 April, up from $19.2285 billion in March and $6.9651 billion on the same date in 2022.
The buildup was driven by strong dollar inflows from exports, tourism, investment and financing, while the bank also bought foreign currency to meet public-sector needs and smooth exchange-rate volatility.
Reserves strengthen Costa Rica's buffer against external shocks, but the IMF has said they are already adequate and warned intervention should be limited as the strong colón continues to weigh on dollar earners.
Costa Rica is 'swimming in dollars,' but who is drowning as its currency soars to a 20-year high?
With a strong colón hurting exports, can Costa Rica's new leader protect the economy without defying IMF advice?
Are Costa Rica's record reserves enough to shield it from rising global oil prices and a new Mideast conflict?
Costa Rica's International Reserves Surge to $20.9 Billion in 2026 Amid Currency Strength and Export Challenges
Overview
By April 2026, Costa Rica's international reserves surged to a record $20.9 billion, driven by strong foreign direct investment, a shrinking current account deficit, robust service exports, external financing, and financial inflows from carry trade activities. These inflows caused the colón to appreciate over 20%, prompting the Central Bank to intervene heavily in the foreign exchange market to moderate volatility and accumulate reserves. While the strong reserves provide vital protection against external shocks and support low inflation, the currency's strength challenges exporters and tourism by reducing competitiveness. The IMF recommends limiting interventions to disorderly market conditions and urges deeper foreign exchange markets to better manage risks, highlighting a delicate balance between stability and economic growth.