US dollar scarcity threatens Bolivia’s ‘economic miracle’

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US dollar scarcity threatens Bolivia’s ‘economic miracle’​

By CARLOS VALDEZApril 15, 2023

LA PAZ, Bolivia (AP) — Sofia Andrade, a lawyer, chose over the past month to withdraw all her dollar savings from the bank as the US currency became scarce on the streets of Bolivia.

“I prefer to have them at home,” she said. “I fear they won’t let me withdraw them later.”

Like her, many Bolivians are withdrawing their dollar deposits or rushing to buy the US currency amid increased concern about Bolivia’s economic fragility, a marked change for a country that for more than a decade experienced what many called an “economic miracle” amid strong growth, record exports, low inflation, a fixed exchange rate and subsidized gasoline.

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US dollar scarcity threatens Bolivia's 'economic miracle'

LA PAZ, Bolivia (AP) — Sofia Andrade, a lawyer, chose over the past month to withdraw all her dollar savings from the bank as the US currency became scarce on the streets of Bolivia. “I prefer to have them at home,” she said.

apnews.com

 

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Bolivian Bonds Jump After Senate Approves Bill to Monetize Gold​

• Approval is a key step to ease Bolivia’s dollar shortage
• Opposition calls the bill a patch for Arce to remain in power

By
Sergio Mendoza
May 4, 2023 at 10:20 PM EDTUpdated onMay 5, 2023 at 9:43 AM EDT

Bolivian bonds jumped after the country’s Senate approved late Thursday a central bank bill that would allow the government to monetize its gold reserves, a key step to ease a dollar shortage and tame a growing financial crisis.

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Bloomberg - Are you a robot?

 

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Non-paywall report:

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The new law will allow the central bank to buy raw gold from mining cooperatives in the country and convert it into gold currency or bars to trade on international markets.
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Bolivian senate approves 'gold law' aimed at bolstering foreign reserves

So, it gives their central bank permission to sell their gold reserves.