Bolivia ends 15-year dollar peg in attempt to restore economic stability
The central bank set a new official rate at 9.73 bolivianos per dollar as Bolivia seeks to rebuild reserves and secure IMF financing.
- 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.
17 Articles
17 Articles
Bolivia's major economic policy shift as it ends a dollar peg after 15 years to adopt a flexible exchange-rate system.
Bolivia ends 15-year dollar peg in attempt to restore economic stability
While Samuel Doria Medina believes that the measure can contribute to financial stability, Jaime Dunn argues that devaluation, without structural reforms, will only reflect the problems of the economy.
Bolivia Central Bank: 7 Changes After Dollar Peg
La Paz, Bolivia, June 27, 2026 – Brussels Morning Newspaper — Bolivia central bank has entered a new phase of monetary policy after the government ended the country’s 15-year dollar peg, a move aimed at restoring economic stability and improving access to foreign currency. The policy change follows months of pressure from declining foreign reserves, rising […]
1. SUMMARY OF THE CHANGE OF A TYPE OF CHANGE REGIME REFERRED TO A FLEXIBLE ONE For approximately fifteen years Bolivia maintained a practically fixed exchange rate regime, where the Central Bank of Bolivia (BCB) established...
This decision puts an end to the fixed exchange rate regime that had governed since 2011 and maintained an official change from the dollar to Bs 6.96.
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