Bolivia Lifts 15-Year Dollar Peg, Devalues Peso 40% to 9.73 per Dollar

2 articles · Updated · FRANCE 24 English · Jun 29

Bolivia's central bank opened trading Monday at 9.73 pesos per dollar, replacing the long-fixed 6.96 rate with a near-market level after years of acute dollar shortages.
The government said the move is meant to draw foreign currency back into the formal economy and ease a crisis fueled by depleted reserves after a decade-long collapse in gas production.
The new rate aligns closely with the parallel market, where dollars had traded at up to three times the old official price, prompting some Bolivians to say authorities are finally recognizing reality.
Economists warned the nearly 40% devaluation will likely raise imported-goods prices, though it could also improve export competitiveness and foreign investment if exchange-rate uncertainty fades.
The policy shift follows President Rodrigo Paz's June 20 emergency declaration after weeks of opposition blockades over Bolivia's worst economic crisis in four decades.

Sources

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FRANCE 24 English3h ago

Bolivia Lifts 15-Year Dollar Peg, Devalues Peso by 40% to Revive Economy

Bilyonaryo Business News3h ago

Sobrang stupid': Cabinet exec slams Remolona for remarks suggesting BSP okay with peso sliding to 63.50 vs dollar

Can Bolivia's president survive the social firestorm after devaluing the currency by 40%?

Will foreign investors rescue Bolivia's economy, or is the political risk now too great?

Bolivia’s 2026 Exchange Rate Shock: From Dollar Shortage to IMF-Driven Reform

Overview

In June 2026, Bolivia ended its 15-year dollar peg and shifted to a flexible exchange rate, leading to a 30% devaluation of the boliviano. This move aimed to make exports more competitive and boost local industries, but it also triggered higher inflation and increased the cost of imports. The sudden change created significant economic uncertainty, influencing consumer behavior and savings choices. Widespread protests and a state of emergency followed, highlighting the social and political challenges of this major policy shift. Bolivia’s experience shows how currency reforms can deeply impact both the economy and society.

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