[REVISION HISTORY]

Bolivia: Post-blockade recovery and currency stabilization

Updated 4 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-13 14:20 UTC → 2026-09-17 00:11 UTC · added ~~removed~~

Following the nationwide unrest in May 2026, the Paz administration moved to stabilize the country through security operations and economic recovery plans. After 54 days of disruptions, the government declared a state of emergency on June 19 to clear blockades. This period saw the detention of union leader David Quispe Machaca, who was later placed under house arrest in July. Economic recovery efforts have focused on agriculture and tourism, though instability persists. A chronic diesel shortage has hampered transport and farming, leading to sharp surges in chicken prices by August. To address fiscal tensions, President Paz scheduled a summit in Sucre on August 5 to discuss the “50-50” proposal for redistributing public resources. In mid-August, the Central Bank of Bolivia (BCB) entered a new phase of its gradual dollar repatriation program. While Economy Minister José Gabriel Espinoza initially expected a downward trend in the exchange rate, the official rate rose to Bs 12.64 per dollar. To mitigate fluctuations, the BCB announced on September 9 that it would offer US dollars to financial institutions, including making $35 million available to the private banking sector at a rate of Bs 12.10. Following these interventions, the official exchange rate declined to Bs 12.42 by September 10. To absorb liquidity, the BCB also implemented a Restricted Monetary Reserve, requiring banks to immobilize 3 percent of certain boliviano deposits for 180 days. As of mid-September, the exchange rate has become a central focus of national conversation, impacting contracts, rentals, and savings. Analysts note that the current preoccupation with the dollar mirrors the period of hyperinflation in the 1980s.

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