The local currency in Costa Rica is the colones (prononced like "co-loan-nays" with the emphasis on the "loan"). US dollars are welcome everywhere as are travellers checks (in US funds). CAUTION: Make sure that your US bills are immaculate - the smallest defacement (for example, a rip, a mark, a pen mark or any writing, etc.), makes the bills unacceptable except perhaps at large banks in San Jose (but who would want to spend a couple of hours waiting around a bank on a beautiful day). In complete contrast, The Costa Rica treasury gets every last mile out of the colones bills - they may be mere tattered fragmentary remnants of the original bill but nevertheless they are readily accepted in transactions.The closest bank machine is located about 1 block away, beside Cafe De Paris. They only accept Visa at this machine. Another caution is travellers checks - make certain your signature is totally repeatable. It is eaiser if you do not have to bring travellers checks. We have seen folks unable to cash their travellers checks due to some small variations in their signatures.
You can exchange US dollars for colones at hotels, banks, and money changers but the usual exchange charges apply and most folks do not bother. You will almost always get your change in colones even when you pay in US dollars. Hence, you will eventually end up with a supply of colones no matter what. Keep an eye on the exchange rate (and do not be afraid to ask what the current exchange rate is) but you can expect small variations from one location or vendor to the next.
A small historical table of the exchange rate follows:
| Date of Exchange |
Rate (colones per US Dollar) |
|
| March 2001 |
321 |
| August 2002 |
364 |
| March 2003 |
375 |
| September 2003 |
400 |
| April 2004 |
425 |
| July 2004 |
440 |
| February 2005 |
465 |
| July 2007 |
525 |
For up-dated to the day check http://www.xe.com/
Below is a picture of a crisp new 5 colones bill - this was a commemorative issue.
The inflation rate in Costa Rica is approximately 12% per annum.
