Private banks in Costa Rica reported a sharp decline in profits during the first half of 2026, driven primarily by the weakening of the US dollar against the local currency.
The depreciation of the dollar has eroded the value of foreign-denominated assets and reduced interest income for lenders, creating a significant drag on sector-wide earnings.
The currency shift is also impacting public finances.
The Ministry of Finance has seen a reduction in tax receipts, as lower dollar values translate into reduced revenue from duties and taxes tied to foreign currency transactions.
This dual pressure on both private sector profitability and state coffers highlights the sensitivity of Costa Rica's economy to exchange rate fluctuations.
According to La Nacion, the combination of lower banking profits and diminished tax collection underscores the broader economic vulnerability linked to the dollar's performance.