Updated
Updated · Bloomberg · Jun 15
Bolivia Nears IMF Deal as Floating FX Move Ends 15-Year Dollar Peg
Updated
Updated · Bloomberg · Jun 15

Bolivia Nears IMF Deal as Floating FX Move Ends 15-Year Dollar Peg

2 articles · Updated · Bloomberg · Jun 15

Summary

  • Bolivia told investors it is close to securing an IMF financing program, with a shift to a floating exchange rate expected before the deal is finalized.
  • Christian Morales, the deputy minister of Treasury and Public Credit, said the currency changes could come as soon as this week, according to people on a Monday investor call organized by an investment bank.
  • The planned FX unification would end Bolivia’s dollar peg after more than 15 years, marking a major policy change as the government seeks external financing.
  • An IMF agreement would give Bolivia fresh funding after the exchange-rate overhaul, tying the country’s near-term stabilization plans to the currency reset.

Insights

Is Bolivia’s high-stakes currency float a necessary cure or a final push towards total economic collapse?
With deadly protests already raging, can this economic shock therapy save Bolivia without shattering its society?