Bolivia's Flexible Exchange Rate Pushes Official Dollar to 10.40 Bs

Bolivia introduced a flexible exchange‑rate regime on 29 June, ending a 15‑year fixed‑rate system that had pegged the dollar at 6.96 bolivianos. The new regime allows the official rate to fluctuate, and by mid‑July it reached 10.40 Bs, while the parallel market traded around 10.45 Bs.

Economists warn that the shift alone will not resolve the country’s chronic dollar shortage. Analysts Fernando Romero and Gary Rodríguez say additional fiscal cuts, legal reforms and measures to attract foreign investment are needed to back the flexible system and avoid inflationary pressures. The change follows a decline in export earnings, especially from natural‑gas sales, and a rise in imports that depleted international reserves.

The government’s Ministry of Economy has underscored that the flexible rate is intended to reflect market conditions, but the parallel market continues to operate, indicating ongoing constraints in official dollar availability.