The economies of Central America are all tied to the
performance of the US, but Costa Rica has a particularly strong
connection - a dynamic that is not always positive. As
developed market central banks flirt with ending quantitative
easing, Costa Rica is bracing for fallout.
Bank of the Year, Costa Rica: BAC San José
Flows of speculative capital to Costa Rica present both risks and opportunities for local banks
The country has received extensive inflows of speculative
capital over recent years. That has driven its currency, the
colón, up against the dollar.
Now, banks are steeling themselves for a reversal in the
"Rates in the developed world are going to rise," says
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