Bolivia ends peg to US currency after 15 years
Finance ministry calls arrangement ‘unsustainable’ amid domestic dollar crunch
Bolivia has moved to a flexible exchange-rate system, thus ending the boliviano’s 15-year peg to the dollar.
In a statement on June 26, the Ministry of Economy and Public Finance said the move would “ensure balance of payments equilibrium, stabilise domestic inflation as quickly as possible, and mitigate the effects of external shocks”. The Central Bank of Bolivia is to oversee the transition to a new exchange-rate regime based on an assessment of daily supply and demand in the foreign exchange
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