Costa Rica colón hits 21 year high as USD purchasing power drops 33%

Colón hits 21-year high against the dollar

Costa Rica's colón traded near ₡455 per USD in mid-June 2026, down from roughly ₡680 in mid-2022 and the strongest level since 2005, per Trading Economics market data. The Banco Central de Costa Rica (BCCR) bought almost $500 million over a five-week stretch earlier this year to slow the appreciation, Bloomberg reported.

The currency gained about 7% year-to-date by March 2026, when it touched ₡465 per USD. Wise's mid-market series put the six-month average at roughly ₡491, with a low of ₡464 in late March and a high of ₡499 on Dec. 31, 2025. The 2024 run was already among the world's strongest currency moves, comparable to the British pound, Swiss franc and Japanese yen, per a FrontierView macro note.

The U.S. State Department's 2025 Investment Climate Statement linked the appreciation to Costa Rica's IMF-backed stabilization program. The IMF's 2026 Article IV mission flagged prolonged low inflation and deflation risks under the same policy framework.

Dollar-paid expats absorb the hit

Retirees living on U.S. Social Security, pensions or USD investment income see local purchasing power shrink each time a dollar buys fewer colones, even when rent and grocery prices in colones stay flat.

International Living pegs a single expat's monthly budget at $1,600 to $2,000, with a sample budget around $2,240. A 2025 real-estate cost comparison put comfortable living at $2,000 to $3,000 a month. Those USD figures climb automatically as the colón strengthens, because the underlying expenses are colón-denominated.

Remote workers paid in dollars face the same squeeze on rent, coworking memberships and daily spending in San José, Tamarindo and Nosara.

How to track the rate and budget around it

• Check the BCCR tipo de cambio de referencia daily for the official buy/sell benchmark used by Costa Rican banks. June 2026 reference rates ran near ₡451 buy and ₡457 sell.
• Cross-check with Trading Economics or Wise for mid-market quotes before transferring funds.
• Budget in colones, not dollars, when signing long-term leases so a further appreciation doesn't blow up the math.

Expats holding multi-currency accounts can time conversions around BCCR intervention windows, when the central bank's dollar purchases briefly cap the colón's rise.

Read our full Costa Rica guide for the complete picture.