bolivian It is going through one of its worst financial crises due to the shortage of dollars: since the beginning of March, the absence of the North American currency began to be reported in exchange houses. To date, only the Central Bank has the foreign bill and, in recent days, long queues have formed outside the financial institution, where citizens wait up to more than six hours to get a few dollars, according to the Bloomberg media.
One of the main reasons behind this scenario is the weakening of lto export natural gas, one of the most important hydrocarbons in the Latin American country. This would also be preventing the Government of Luis Arce from borrowing from the bond markets at the highest rates. In addition, the boliviano, Bolivia’s currency, has no backing and maintains a rate close to seven per dollar, the agency reported.
Likewise, the international context has also had an impact on the Bolivian economy. Both the recent bankruptcy of the Silicon Valley Bank, which came to reduce some European financial institutions, as well as the conflicts in the finance ministries of Turkey and Zambia, and the expectation that the Federal Reserve (Fed) continue to increase interest rates to combat inflation has also affected the country’s financial situation.
According to Marcelo Montenegro, Minister of Economy and Public Finance; and the president of the Central Bank of Bolivia (BCB), Edwin Rojas, for this year in Bolivia an inflation rate of 3.28% and a GDP growth of 4.86% are expected.
Source: Larepublica
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