Trending 
Bolivia has lifted a 15-year fixed exchange rate for the US dollar in a bid to attract more foreign currency and address a worsening economic crisis that has triggered unrest in the country.
The move was announced on Monday, with the Central Bank opening trading at a new official rate of 9.73 bolivianos per dollar, close to the parallel market rate. This represents a devaluation of nearly 40 per cent compared to the previous rate of 6.96 set in 2011.
A shortage of US dollars in the country has fuelled a black market where the currency has at times traded at up to three times the official rate.
President Rodrigo Paz said on Sunday, “We are putting the economy in order so that dollars can come in from abroad.” The decision comes after months of economic pressure and protests.
On June 20, President Paz declared a state of emergency following nearly two months of road blockades led by opposition groups. The blockades disrupted the supply of food, medicine, and fuel to La Paz and other cities before security forces cleared them. Many citizens reacted with concern over the devaluation.
“Now the government is recognising the price we were all already paying for dollars,” said a 42-year-old vendor in El Alto.
Fernando Romero, president of the College of Economists of Tarija, said the devaluation could “likely cause the prices of imported goods to increase,” but may also help improve exports and attract investment if stability returns.
Bolivia’s foreign reserves have dropped sharply in recent years due to declining gas production.
President Paz, who took office last year on a promise to revive the economy after years of socialist rule, is now facing resistance from trade unions, farmers, and Indigenous groups linked to former president Evo Morales.
