Bolivia's official dollar rate drops again to Bs 11.71

Bolivia's official dollar exchange rate has seen another decrease, settling at Bs 11.71 for Wednesday. This marks a continued downward trend since the currency's peak value of Bs 12.15 in late July.

The flexible exchange rate, announced daily by the Central Bank of Bolivia (BCB), has been gradually declining since July 31. Despite this official decrease, the parallel market rate for the U.S. dollar continues to trade slightly lower than the official rate. Currently, the parallel market is buying dollars at Bs 11.51 and selling them at Bs 11.57.

This flexible exchange rate system replaced the fixed rate of Bs 6.96, which had been in place for over 15 years. The new scheme allows the BCB to publish a fluctuating exchange rate that responds to the conditions of the foreign exchange market, rather than maintaining a static parity for extended periods.

The shift to a flexible exchange rate was implemented to better align the currency's value with market dynamics. The recent downward trend in the official rate suggests a stabilization or strengthening of the Bolivian currency against the U.S. dollar, at least in the official market.