Bolivia ends 15-year dollar peg in attempt to restore economic stability
The central bank said the shift will restore stability as dollar shortages and falling reserves pushed the parallel rate near 20 bolivianos.
- On Friday, Bolivia adopted a flexible exchange-rate system, ending a 15-year dollar peg to restore economic stability and "strengthen macroeconomic stability, preserve external competitiveness and contribute to the balance of payments equilibrium."
- Falling foreign-exchange reserves and increasing dollar shortages fueled a parallel market where the dollar traded near 20 bolivianos, prompting Bolivia's bid for a financing program worth at least $2.5 billion from the International Monetary Fund.
- The Central bank updated its website to show an official rate of 9.73 bolivianos per dollar as of Monday, implying a loss of about 30% in the currency's value from the previous buy rate.
- Last week, President Rodrigo Paz declared a state of emergency to clear blockades organized by the Bolivian Workers, who oppose International Monetary Fund borrowing fearing austerity measures.
- Economist Gonzalo Chavez warned that challenges persist despite the policy shift, stating, "Once you have this, the important thing is to continue getting dollars, to have international reserves in the Central bank.
31 Articles
31 Articles
La Paz, Bolivia. Bolivia has released the dollar price since Monday after 15 years of government-set listing, in an attempt to attract currency to the country to alleviate the worst economic crisis in four decades. The shortage of foreign currency has led in recent years to serious fiscal and monetary imbalances, such as the flourishing of a parallel dollar of massive popular use at a higher price than the official one. “We are ordering the econ…
Bolivia ends 15-year currency peg in shift to market-based exchange rate
Bolivia has ended one of Latin America's longest-running fixed exchange rate regimes, formalising a transition to a flexible currency system that will see the boliviano's value determined by daily market supply and demand.
In Bolivia, it is a small economic revolution that is taking place from this Monday, June 29, 2026. For fifteen years, the exchange rate between the national currency, the Boliviano, and the dollar was fixed by the Central Bank. From now on, this exchange rate will evolve according to the supply and demand of dollars, necessary to cope with the shortage of the green note and favor the export sectors. In fact, the Boliviano loses nearly 40% of it…
Bolivia Ends Its Dollar Peg, Devaluing the Boliviano 30%
Economy Key Facts —The decree. Bolivia’s economy ministry ended the country’s dollar peg on Friday, June 26, adopting a flexible exchange rate. —The history. The official rate had been fixed near 6.96 per dollar since 2011, one of the region’s longest pegs. —The new rate. The central bank’s official rate moved to 9.73 bolivianos per […] The post Bolivia Ends Its Dollar Peg, Devaluing the Boliviano 30% appeared first on The Rio Times.
Bolivia's major economic policy shift as it ends a dollar peg after 15 years to adopt a flexible exchange-rate system.
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