USD:CRC, 10 year high

in #money5 years ago

Hi friends,

Just as I mentioned in a previous post I will be creating an information bot to track some indexes and indicators of Costa Rica. The idea is to create something to show that is useful but also be able to see the information daily and probably get to do some analysis that will be a dip into the current situation.

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The #CRC just made it back to the 10 years record high
It means we (Costa Rica) are getting into same labels after the crisis from the 2008. What has change? Pretty much markets slowed down, there is a public financial crisis that needs to be solved and the direction the government is taking is to increase the taxes. With the new tax reform many sectors are against and there has been a 45 days strike and some sectors had to come back to work and get sanctions as the strike was called to be illegal.

The first effect to be seen is the increase in the change rate for #USD. This means that the government is creating money to solve their problems without enough stuff to back up those movements. In terms of possession acquisition, tourists will be able to spend less and get more from the same #USD but for locals pretty much everything is gonna cost more because we are a 100% dependent economy on goods we import. Many Costa Ricans opted for loans in #USD (unlike me, many earn in #CRC) to pay less interest rate per thousand which was a great move as you can see in the chart after the crisis but it is hitting new loans owners faster. I have a loan in #USD and also #CRC, in any case I'm sure they are going to increase the #CRC loans interest rate as many people will start moving their loans from #USD to #CRC.

This crisis has been extending from the North and also the South, the Central American countries are getting hit hard on this moment and the effects will start to spread in the Latin American countries. Even United States will start seeing the goods decrease in import numbers as also some other have decided to immigrate to the US.

How is your country doing? What can you tell me from your region? What are the economical challenges the country you live in might face?

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Ugh....I hate to see this trend. From the US dollar currency index I follow (DXY), I see that the USD will destabilize and fall in value. Base curriencies (like the CRC) that use it to quote a value will increase. On one hand this sounds good, but on the other hand you need more base currency for the same quantity of quote currency (USD). Products, goods, and services cost more as a result. Since Costa Rica is heavily dependent upon the USD exchange rate, you guys are gonna get hit hard. I am seeing a big push to transfer value into precious metals. Personally, I'm acquiring a gold based digital asset called Quints. It's a blockchain controlled token that uses the Bitshares blockchain.

I'm sure the right move is to get metals and crypto or a hybrid or actually anything like that that is not fiat.

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