Bolivia shifts to flexible dollar exchange rate, ending 15‑year peg

On 29 June 2026 Bolivia ended a 15‑year fixed‑exchange‑rate regime (6.86/6.96 bolivianos per U.S. dollar) and introduced a flexible, market‑driven system. The Central Bank of Bolivia set the inaugural official rate at 9.73 bolivianos per dollar, with daily updates based on supply and demand.

The government says the change will improve macro‑economic stability, balance‑of‑payments health and transparency, and is expected to channel more than US$1 billion in remittances back through the financial system. Officials highlight benefits for investors, exporters and Bolivians receiving money from abroad.

The reform sparked political debate. Former president Evo Morales called the move a “hidden devaluation,” while Economy Minister José Gabriel Espinoza defended it as a necessary “normalisation” of the economy. Opposition senator Manuel Ormachea welcomed the flexibility but urged an IMF programme to secure dollar supplies. The shift follows years of dollar shortages, a parallel market trading near 9‑10 bolivianos per dollar, and a drop in international reserves from about $15 billion in 2014 to under $2 billion.