Bolivia to begin returning dollar deposits in August

For countless Bolivian savers, the question of when they can access their hard-earned dollar deposits remains paramount. The government has now signaled a concrete step forward, announcing that the return of deposits exceeding $1,000 will commence in August. This move comes as a significant portion of the $2.5 billion still held in the financial system awaits restitution. Minister of Economy, José Gabriel Espinoza, has assured that a detailed schedule will be presented, prioritizing those with the smallest amounts, offering a glimmer of hope to many. The underlying issue stems from a persistent foreign currency crisis, which led to a liquidity crunch rather than a purely financial one; banks simply lacked sufficient dollar cash to meet widespread withdrawal demands. This situation was exacerbated by dwindling international reserves, limiting the state's ability to supply the market with dollars. The government's strategy now hinges on rebuilding these reserves. Efforts are underway to secure external financing from multilateral organizations and to boost dollar inflows from export settlements, which are expected to improve the exchange market. Furthermore, the administration seeks to foster a more active role for the private sector in supplying dollars through investment, remittances, and other commercial operations. The parallel dollar market has seen an increase, with the rate surpassing 10 Bolivianos, largely attributed to higher fuel import costs and broader regional economic pressures.

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Until the third quarter, we will present a schedule of returns.