Bolivia's flexible dollar regime sparks political criticism and economic concerns

Deputy Claudia Bilbao of the Democratic Christian Party publicly criticized Bolivia's monetary authorities over the recent surge in the dollar's value under the new flexible exchange‑rate regime. She accused the Central Bank of Bolivia, the Financial System Supervisory Authority, Banco Unión and the Ministry of Economy of failing to provide market reassurance, noting the official rate rose to 11 bolivianos per dollar on 22 July, up from 10.90 the day before and reaching its highest level since the regime began on 29 June.

Economic analyst Ernesto Bernal echoed the concerns, arguing that the flexible dollar policy alone cannot stabilize the economy. He warned that without a reduction in the fiscal deficit, higher international reserves and external financing of roughly $10‑15 billion, the policy could fuel inflation, increase fuel prices and hurt low‑income households. Bernal also highlighted the lack of central‑bank independence and the need for broader fiscal measures to restore confidence.