Bolivia ends 15-year dollar peg
Key takeaways
- Bolivia had kept its official exchange rate largely unchanged since 2011 at 6.86 bolivianos per dollar for purchases and 6.96 for sales.
- More recently, the government has been using a reference rate of around 9.90 bolivianos per dollar, which accounts for most commercial and financial transactions.
- The IMF did not immediately reply to a request for comment.
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize Bolivia will adopt a flexible exchange-rate system, the government said on Friday, effectively devaluing the currency by ending a 15-year dollar peg in a major policy shift aimed at restoring economic stability.
Bolivia’s central bank will oversee the shift, as the government aims to “strengthen macroeconomic stability, preserve external competitiveness and contribute to the balance of payments equilibrium,” the economy ministry said in a decree.
The move is part of Bolivia’s broader effort to normalize currency markets and boost investor confidence as Bolivia negotiates a financing program worth at least $2.5 billion with the International Monetary Fund and grapples with severe scarcity of dollars.