Costa Rican Colon to Float Against Dollar as Bank Releases Brake
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Costa Rica will allow the value of its currency, the colon, to float against the U.S. dollar after decades of gradually reduced brakes on its volatility, the country’s central bank announced Saturday.
Costa Rica implemented a “currency band” in October 2006 after 22 years of small devaluations. The band limited the colon’s value to a range of 500 to 866 per dollar.