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Bolivia reports $17 million in transactions on first day of new exchange rate
🇵🇾 Paraguay /Economy & Trade

Bolivia reports $17 million in transactions on first day of new exchange rate

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Official statement Outcome reported
  • Bolivia's financial system processed $17 million on the first day of its new flexible exchange rate regime.
  • The move replaces a fixed rate that had been in place for 15 years, aiming to control inflation.
  • The central bank president called the initial movement "positive" and noted ample liquidity in the economy.

Bolivia's financial system saw $17 million in transactions on the inaugural day of its new flexible exchange rate regime, a move hailed as "positive" by the Central Bank of Bolivia (BCB). This marks a significant shift from the fixed exchange rate policy that had governed the country for 15 years.

The financial system registered a movement of 17 million dollars in various operations, something qualified as "positive" after the elimination of the fixed exchange rate that governed for 15 years.

— Banco Central de Bolivia (BCB)Describing the initial success of the new flexible exchange rate regime.

BCB President David Espinoza reported that approximately $17 million was traded across nearly 20,000 operations within the financial system on Monday. Additionally, $100 million was exchanged in foreign trade operations for sending and receiving funds. Espinoza emphasized that these figures demonstrate the availability of dollars in Bolivia's economy and sufficient liquidity in the national currency, which holds 14,000 million bolivianos (approximately $1.434 million).

On Monday, 17 million dollars were negotiated in 'nearly 20,000 operations in the financial system', which 'is operating with absolute normality'.

— David EspinozaProviding specific figures for the first day of the new exchange rate policy.

The new policy aims to ensure inflation converges to a single-digit rate by 2027. Bolivia ended 2025 with an inflation rate of 20.40%, the highest in the 21st century. The government projects this year's inflation to be 14%. The BCB also plans to implement monetary base management rules to curb future inflationary pressures.

There are dollars in the economy and liquidity in the national currency.

— David EspinozaAssessing the overall economic situation following the exchange rate change.

This transition follows a resolution by the Ministry of Economy to adopt a flexible exchange rate, abandoning the fixed policy established in late 2011. The dollar's value shifted from a fixed 6.96 bolivianos since November 2011 to 9.73 bolivianos on Monday, and was trading at 9.76 on Tuesday. Espinoza attributed the previous fixed rate to contracted investment, increased poverty, deepened informality, and the depletion of international reserves from $15 billion in 2015 to near zero.

The new exchange rate policy 'will guarantee the convergence of inflation to a single-digit rate'.

— David EspinozaStating the projected impact of the new policy on inflation.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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