Currency

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 in Nicoya which is about 1.5 hours away by car from Nosara. Check the different banks in Nicoya for the banking system that you normally use (for example, CIRRUS, Interac, etc.). Another caution re travellers checks - make certain your signature is totally repeatable. 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.

As an example, the exchange rate in March 2001 was as follows:

• One US Dollar yielded about 321 colones
• One Canadian Dollar yielded about 200 colones
• One gallon of gasoline cost about $3 US ($4 Canadian)

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
February 2006	500

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.

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