Bolivia Central Bank Intervenes with Dollar Sales to Banks

Bolivia's central bank announced plans to stabilize its currency by offering US dollars to financial institutions. This move aims to combat volatility in the foreign-exchange market, which has been driven by the country's adoption of a flexible exchange regime.

The new system was implemented in late June and has led to a significant decline in the value of the Bolivian currency, with it losing over 20% of its value since then. The central bank stated that this measure is intended to 'mitigate unnecessary volatility observed in the foreign-exchange market that is inconsistent with economic fundamentals.'

The exact rate at which the dollars will be offered was not specified by the central bank, but this initiative should provide some relief for financial institutions and potentially help stabilize the currency.