Bolivia Ends 15-Year Dollar Peg as Paz Pushes Reform After 53 Days of Blockades
Updated
Updated · Bloomberg · Jun 27
Bolivia Ends 15-Year Dollar Peg as Paz Pushes Reform After 53 Days of Blockades
3 articles · Updated · Bloomberg · Jun 27
Summary
Bolivia said Friday it will shift to a flexible exchange rate, a major policy break aimed at restoring macroeconomic stability after weeks of economic disruption.
The move ends a 15-year dollar peg, with the central bank set to let the boliviano be guided by daily supply and demand while managing inflation, liquidity and volatility.
Rodrigo Paz is pairing the currency change with a renewed push to loosen nationalist rules in mining, hydrocarbons, lithium and energy to draw foreign investment.
The reform drive resumes after 53 days of blockades ended under a 90-day state of emergency that allowed military intervention and suspension of some individual rights.