U.S. Dollar Scarcity Threatens Bolivia’s ‘Economic Miracle’

By Carlos Valdez
Associated Press
Saturday, April 15, 2023

LA PAZ, Bolivia — Sofia Andrade, a lawyer, chose over the past month to withdraw all her dollar savings from the bank as the US currency became scarce on the streets of Bolivia.

“I prefer to have them at home,” she said. “I fear they won’t let me withdraw them later.”

Like her, many Bolivians are withdrawing their dollar deposits or rushing to buy the U.S. currency amid increased concern about Bolivia’s economic fragility, a marked change for a country that for more than a decade experienced what many called an “economic miracle” amid strong growth, record exports, low inflation, a fixed exchange rate, and subsidized gasoline.

The scarcity of the greenback, which opposition politicians attribute to the Central Bank running out of hard currency reserves and the government blames on speculation, means that for the first time since 2011, a parallel market for the U.S. dollar has emerged that charges slightly more than the official price.

When the shortage began earlier this year, hundreds spent the night outside the Central Bank to buy dollars at the official exchange rate. A new system has now been established to buy the currency online. The physical lines have disappeared, but the problem remains and is reminding Bolivians of past economic woes. …

… For the remainder of the report:

https://apnews.com/article/bolivia-economy-us-dollar-42f815800dd18eb0952590bb8b968cfd

Source : GATA