That's because the base unit is essentially 1,000 colones, and if you're transacting in US dollars, most people will give you 1000 colones to 2 US dollars (500:

That's because the base unit is essentially 1,000 colones, and if you're transacting in US dollars, most people will give you 1000 colones to 2 US dollars (500:1). If you change your money, then you'll obviously get a better rate. When I said "holding US dollars," I didn't mean literally holding US dollars. I meant Costa Rica is generally cheaper than the United States for people whose primary income, or wealth is in US dollars.