Bolivia Central Bank Starts Dollar Sales Amid Currency Volatility

Bolivia's central bank is taking steps to stabilize its currency by offering US dollars to financial institutions. The move comes after the peso sank more than 20% in value since Bolivia adopted a flexible foreign-exchange regime in late June.

The central bank stated that this measure aims to mitigate unnecessary volatility observed in the foreign-exchange market, which is inconsistent with economic fundamentals.

The dollar sales will begin on Wednesday, but the central bank did not specify the rate at which it will offer the dollars. This decision marks a significant shift for Bolivia's economy, as it seeks to balance its need for currency stability with the benefits of a more flexible exchange rate regime.