Bolivia implements flexible exchange rate regime

Bolivia has ended its fixed exchange rate policy, which had been in place for nearly 15 years, transitioning to a flexible regime. The Ministry of Economy approved a resolution establishing this new system to strengthen macroeconomic stability, preserve external competitiveness, and balance payments.

The Central Bank of Bolivia (BCB) is responsible for managing the transition. The new official exchange rate was set at 9.73 bolivianos per dollar, effective June 29, 2026. Under the new regulations, the official exchange rate will be updated every business day at 20:00 via official channels.

This shift aims to address the gap between the official rate and the parallel market, which had been driven by a scarcity of foreign currency. While the move is intended to reduce the depletion of international reserves and incentivize exporters, it has also led to an initial depreciation of the boliviano and contributed to rising inflation.