When traveling to a foreign country, one big question is always what is the currency and exchange rate? In this post, we’ll give background on Costa Rica’s exchange rate and quick tips on how to go from US dollars to Costa Rican colones. We’ll also link to some of our other articles that will answer more of your questions about handling money on your vacation.
Background
Costa Rica’s exchange rate is set by the Central Bank of Costa Rica. It fluctuates daily but is usually between 500-600 colones (₡) per 1 US dollar. You can check today’s official exchange rate through the government website.
The official currency is the colon, named after Christopher Columbus. The money is colorful paper bills as well as coins. Bills come in 1,000, 2,000, 5,000, 10,000, and 20,000 denominations.
Quick Conversion Tip – Dollars to Colones
500 colones equals approximately 1 USD.
A quick way to convert from Costa Rican colones to US dollars is to double the first number, then remove the extra zeros.
For example:
1,000 colones is about $2 USD
5,000 colones is about $10 USD
10,000 colones is about $20 USD
20,000 colones is about $40 USD
50,000 colones is about $100 USD
Here’s a graphic you can save for later.
This conversion method is not perfect as it varies based on the current exchange rate but will give you a good idea of how much something costs.
Why Are Some Things Priced in US Dollars?
Pricing in Costa Rica is generally in local colones. At the grocery store, gas station, and most restaurants, items will be priced in colones.
However, there are important exceptions. Things related to tourism like hotels, tours, shuttle van transfers, and rental cars are usually priced in US dollars. This is because the dollar has generally been more stable. A majority of Costa Rica’s visitors are also from the US.
Paying in US Dollars
Although Costa Rica’s official currency is the colon, US dollars are also widely accepted. Should you just pay in US dollars then on your Costa Rica vacation? Not always. Here’s our take:
If you’re from the United States or can easily get US dollars for your trip, pay for anything priced in dollars with dollars. No need to use colones and convert currency in this case. Just be sure to bring denominations of $20 or less, as many merchants will not accept $50 and $100 bills. The bills also need to be in good condition with no rips or markings.
For items priced in colones, using colones is best. This is because you don’t need to worry about the exchange rate you’re getting. Restaurants, stores, taxi drivers, and anyone else can use whatever exchange rate they want if you’re paying in dollars. This usually means that the rate is favorable to them and not you.
If you know you’re getting the correct exchange rate, it’s fine to pay in US dollars. But if you aren’t sure, it’s best to pay in colones when things are priced that way.
What About a Credit Card? Use it!
Credit cards are widely accepted and are our preferred payment method. If you won’t get charged foreign transaction fees from your bank, they are a great option since you know you’ll receive the right exchange rate.
For lots more information, read our post on Using Credit Cards in Costa Rica.
Exchanging Money
Even if you plan to use your credit card most of the time, you should still have some colones for places that don’t accept credit.
The easiest way to get colones is from the ATM with your debit card. You’ll be able to get out colones and even US dollars at most ATMs. ATMs can be found throughout the country, in all but the most remote tourism destinations.
Avoid exchanging money at the airport as it has the highest fees. The same goes for exchanging money in your home country before you arrive. Your bank is likely to charge a high fee.
For more tips on money exchange, check out our Money Matters post.
Conclusion
Figuring out how to go from dollars to colones is not that complicated with some basic knowledge. We hope our conversion tip took out some of this stress. Be sure to read our full Money post for lots more details on using money during your visit.
Have a question about Costa Rica’s exchange rate? Ask us below.
Looking for more information to plan your trip to Costa Rica? Check out these posts:
Using ATMs and Credit Cards in Costa Rica: Learn about getting cash out of the ATM and which credit cards are accepted in Costa Rica.
Packing for Costa Rica: The Essentials – Costa Rica has so many different microclimates. This list will prepare you for wherever your trip takes you.
Simple Spanish for Visiting Costa Rica: Most people who work in tourism speak English, but you will find some Spanish-only speakers. Check out this post for some key phrases to know.
