© Reuters. Marcelo Montenegro, Minister of Economic system of Bolivia, holds a press convention, in La Paz, Bolivia February 20, 2024. REUTERS/Claudia Morales
By Monica Machicao
LA PAZ (Reuters) – Bolivia’s authorities set out on Tuesday a bundle of measures to spur funding and exports because it seeks to reverse a worsening greenback shortage that has left cabinets empty and employees unpaid.
The federal government of President Luis Arce stated its plan, agreed with companies, would goal to chop crimson tape for exports, improve funding in grains manufacturing, make diesel imports simpler, and permit greater vans on the roads.
Reserves have plunged from a peak of some $15 billion a decade in the past to below $2 billion now, eroded by sliding manufacturing and exports of , the mainstay of the Bolivian economic system within the final 20 years.
Truckers have been putting in political capital La Paz over delayed pay, whereas Fitch slashed the nation’s debt ranking deep into ‘junk’ territory earlier this month, citing the slide in reserves ranges that it stated threatens financial stability.
“With these measures we’ll attempt to step by step average the scarcity of {dollars} within the non-public sector,” Minister of Economic system Marcelo Montenegro stated on Tuesday, including the federal government aimed to herald as much as $5 billion by way of the farming and mining sectors.
The issue is stark. Web whole reserves have halved within the final yr, and the money quantity is now below $200 million, in line with the newest information. A lot of the reserves are in gold.
Jaime Ascarrunz, president of Bolivia’s nationwide chamber of commerce, stated the enterprise sector had been pushing measures to bolster exports and herald laborious forex.
“The shortage of {dollars} is one thing that enormously worries us, particularly within the import sectors,” he stated.
In banks and on the streets many individuals stated they might not entry {dollars}, main some to purchase them on the black market, the place the worth of {dollars} is close to 8 bolivianos, above the official charge of 6.96. Others stated they might not get imported supplies they want.
“Sadly we will not convey in additional in the intervening time as a result of lack of {dollars},” stated La Paz veterinarian Fabiola Navia, pointing to half-empty cabinets the place medicines and medical provides would usually be. “That is all of the inventory we have now.”
Hanging truckers within the metropolis stated the reserves slide was affecting the federal government extra broadly and holding up funds.
“The losses are within the tens of millions,” stated Ramiro Barrero, chief of the trucking union. “It has been months that we have been with out cost.”
