Parallel Dollar in Bolivia Hits Lowest Value Since May: Experts Weigh In on Economic Factors

Parallel Dollar in Bolivia Hits Lowest Value Since May: Experts Weigh In on Economic Factors La Paz, Bolivia – The parallel and digital dollar in Bolivia have reached their lowest values since May, with the parallel dollar reportedly trading at 14.97 Bolivianos on Monday. This marks a significant drop from its peak of 20 Bolivianos recorded on May 15. Economist Gonzalo Chávez explained that several factors contribute to this new low. "There is less demand," Chávez stated, "large state-owned companies are no longer buying dollars." He added that alternative options for wealth protection have increased, citing the government's introduction of gold-indexed bonds and the reactivation of the Housing Promotion Unit (UFV), which offers inflation-protected investments. Chávez also mentioned a "mini-spring of dollar inflows" due to the approval of a couple of credits by the Assembly for the government. However, Chávez cautioned against misinterpreting the situation, emphasizing that "the economy remains equally fragile, and therefore there have been no significant structural changes." He pointed out that exports are declining, leading to a trade deficit where imports exceed exports, and international remittances from Bolivians abroad have not grown significantly. Chávez concluded, "This drop in the dollar is only conjunctural, a respite, but not a structural change. We will have to see if things change in the future with the next government." Walter Ruiz, President of FEGASACRUZ, echoed similar sentiments, stating that "many theories we proposed are being confirmed." He highlighted the opening of grain and meat exports and the approval of credits as contributing factors. "There are no blockades," Ruiz noted, adding that "the sum of all these activities precisely generates that a country has a bit of security, and that is why, obviously, the exchange rate also tends to regulate itself automatically." Ruiz also emphasized the commitment of the agricultural and livestock sectors to continue contributing to the national market and bringing in foreign currency through exports. He mentioned a recent visit from Chilean representatives regarding exports, indicating potential for opening new markets. The current trend suggests a temporary relief in the foreign exchange market, driven by specific measures and external factors, rather than a fundamental shift in Bolivia's economic landscape.

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El dólar paralelo sigue bajando y marca su valor más bajo desde mayo …

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