Bolivia ended the fixed exchange rate regime that had been in place for the last 15 years and began implementing a floating exchange rate system, in which the value of the dollar will be determined by supply and demand. The decision represents one of the most significant economic changes in recent decades and is part of the government plan of Rodrigo Paz to address the shortage of foreign currency and stabilize an economy hit by a deep crisis.
The measure comes in a context marked by a lack of dollars, a decline in international reserves, and a deterioration of economic activity, a situation that various analysts describe as the worst crisis Bolivia has faced in over forty years.
Bolivia abandons the fixed exchange rate
With the entry into force of the new exchange rate regime, the Central Bank stopped setting the official price of the dollar, allowing the exchange rate to be determined freely according to market conditions.
The Government maintains that the new scheme will allow for the recovery of foreign currency availability, improve the functioning of the exchange market, and strengthen macroeconomic stability in the medium term.
The decision also aims to normalize access to the dollar, one of the main problems that affected businesses, importers, and citizens in recent months.
The first day passed without incidents
Despite the expectations generated by the regime change, the first day of operation of the floating dollar did not register significant turbulence in the exchange market.
