Bolivia chose to market its Gold reserves abroad as a strategy to obtain liquidity and guarantee imports of Fuelswhich are sold at subsidized prices in the domestic market. This decision is made in the middle of a serious economic crisis, as reported by the Ministry of Economy.
The fall in gas exports has decreased the offer of dollars. In particular, the concern for the use of this measure is increased among economic experts, because it is considered unsustainable in the long term. Next, we tell you more details about the crisis in the highland country.
How much gold did Bolivia sell to finance the import of fuel and hold subsidies to the shortage of dollars?
The head of Ministry of Economy and FinanceMarcelo Montenegro, warned that in 2024 the Central Bank of Bolivia (BCB) acquired 14.5 tons of gold of the mining sector with the purpose of reselling them, in response to the lack of dollars in the country. This operation contributes to sustaining the subsidies of several goods in the country.
For this reason, the monetary entity It presents difficulties in increasing your deposits of this asset. “It has not probably enabled us, for the moment, to increase the stock of reserves,” Montenegro said. Anyway, the economist stressed that the measure allows the government to acquire diesel and gasoline.
How many gold reservations do you have left the Central Bank of Bolivia?
The Central Bank ended 2024 with International reserves which reached US $ 1,976 million. However, only 50 million of this figure corresponded to “liquid reserves”, which implies that this amount represents the available cash. Likewise, Minister Montenegro said that the tons of gold destined for marketing are not included in the 22 tons that the monetary entity retains in its treasury permanently, which complies with what is stipulated by current regulations.
On the other hand, José Luis Evia, who was part of the Board of Directors of the Central Bank of Bolivia, has expressed concern about the recent measure, so it qualifies it as “untenable“In the long term. According to Evia, this situation is because” gold ends “and the lack of availability of it, which could generate complications in the future.
What are the causes of Bolivia’s economic crisis?
Gas exports from Bolivia, which used to be a significant source of foreign exchange income, have experienced a drastic decrease in their participation. In 2013, these sales represented 54.4% of the total exports of the country, while by 2023, this figure has been reduced to only 18.8%, according to official information. This reduction has caused a lower offer of the American currency In the country, which makes its exchange rate more expensive.
Thus, the lack of dollars in the market has led to the appearance of a parallel market, where the price of the US currency has reached 11.3 Bolivians. In contrast, the type of Official changewhich has ceased to be accessible to the population, is 6.97 Bolivians.
Source: Larepublica
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