Bolivia Shifts to Flexible Exchange Rate, Devalues Currency

Bolivia announced a transition from a fixed dollar anchor to a flexible exchange‑rate system, devaluing the boliviano from about 7 per U.S. dollar to roughly 9.7. The government hopes the move will end chronic dollar shortages that have persisted for two years and stimulate export‑oriented sectors such as livestock, agriculture and mining. Critics warn the devaluation could raise import costs and fuel inflation. "I remember ten or twenty years ago everything was fine, our currency had a good value. That is no longer the case today," said Wilfredo in La Paz, adding that rising fuel prices could heavily burden popular classes. The reform is expected to make dollar‑denominated savings more expensive for ordinary Bolivians.