UE to Promote Free Euro Circulation in Central America
The European Union (UE) will promote the free circulation of the euro in Central America in an effort to guarantee a much larger trade exchange with this region, European officials were quoted as saying in Panama.
Thomas Abadia, chargé de affaires of the European Commission to Costa Rica and Panama, explained that a stronger euro circulation and a fairer currency exchange rate will further trade, cooperation and investment.
As a matter of fact, Mr. Abadia remembered that the EU passed recently a 27-million-euro, multiyear cooperation program that will render in higher economic competitiveness for that Central American country.
Mr. Abadia recognized that the Panama-based International Banking Center will secure all conveniences to ease operations and transactions in the European common currency, yet he admitted there’re still some banking hurdles to clear in Central America.
In the case of Costa Rica –he says- “there’re some serious problems” for the free circulation of the euro given that trade-oriented banking institutions and the central bank implement different exchange rates and levy high prices on operations.
This situation is often enraging tourists who can’t believe they ought to pay 420 colons (Costa Rica’s local currency) for every dollar, while the euro exchange rate only sets them back 345 colons.
“I think we must make all financial institutions and money exchange houses aware of the need to use and accept euros, a move that will help them come up with new incentives for the development of tourism in Central America,” Mr. Abadia pointed out.
He noted that Brazil’s decision to open up its economy to the euro allowed the South American giant to enhance its exporting volume to 14 billion euros. Cuba –he added- followed suit and the move is now paying off.
The debates of the oncoming Third Summit of Heads of State from the European Union and Central America –scheduled for May 28 in Mexico’s Guadalajara- will focus on the need to strengthen trade ties between both regions.
