Costa Rica is the most expensive country in Central America. Just about every thing costs more than you might expect. Some prices, especially for upper-range accommodations, are analogous with those in the US, with never fails to astonish American travelers and those coming from the cheaper neighboring countries.

The US dollar has long been the second costa rica currency of Costa Rica. However, outside the tourist areas nobody really refers to dollars. The vast majority of Costa Ricans gets paid in colones, and buy and sell in colones, and you would do well to get the hang of the currency soon after you arrive.

The Costa Rican government regularly devalues the colon. As a result, its value has fallen steadily against the Us dollar over the past few years. Spring 1992 ushered in a dramatic reversal after the government eliminates exchange controls, forcing the Central Bank to lower interest rates in an attempt to slow the colon’s rise. The exchange rate stabilized for a while of approximately 135 colones to the dollar, and predictions were that the dollar would be worth 200 colones by early 1996. As of may 2000 it is 305 and is devaluating at around 17 cents per day. A yearly devaluation of 20% is expected.

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