Costa Rican monetary unit refers to the official currency of Costa Rica, which is the colon (plural: colones). The colon has been the country's monetary unit since 1896 when it replaced the Costa Rican peso. It is named after Christopher Columbus, also known as Cristobal Colon in Spanish, who is considered the discoverer of Costa Rica.
The Costa Rican monetary unit, the colon, is subdivided into 100 smaller units called céntimos. However, céntimos are no longer in circulation and are solely used for accounting purposes. The symbol used for the colon is ₡, which is often placed before the numerical value, such as ₡1,000.
The value of the colon fluctuates against other currencies in the foreign exchange market. The Central Bank of Costa Rica is responsible for managing the monetary policy of the country, which includes regulating and maintaining the stability of the colon. The bank controls factors such as interest rates, money supply, and foreign exchange reserves to influence the value and purchasing power of the currency.
The Costa Rican monetary unit, the colon, is widely accepted and used for daily transactions within the country. It is issued in banknotes of various denominations, including ₡1000, ₡2000, ₡5000, ₡10,000, ₡20,000, and ₡50,000. Coins are also in circulation, ranging in value from ₡5 to ₡500.
Overall, the Costa Rican monetary unit, the colon, plays a vital role in the country's economy, facilitating trade, commerce, and financial transactions within its borders.
