In the last session the euro quoted at closing 7.35 bolivianos on averageso that it implied a change of 2.35% with respect to the figure of the previous day, when it was quoted at 7.18 bolivianos.
In reference to the profitability of the last week, the euro marks an increase in 2.11%%so that in the last year there is still an increase in the 4.11%.
Comparing this data with that of past days, it broke the flat streak of market prices of the last two sessions. In reference to the volatility of the last week, it is noticeably higher than the data obtained for the last year (10.7%), therefore it is going through a phase of instability.
Although the Central Bank of Bolivia has an official price of the dollar, the truth is that on the streets this price is different, something that was evident in early 2023 when a shortage of the US currency was recorded. Currently the official exchange rate is 6.96 for sale and 6.86 for purchase.
Regarding inflation, the Bolivian government expects it to be 3.60% by 2024, a percentage that is close to the ideal of three percentage points. It is worth mentioning that Bolivia has been characterized by registering stable inflation control in recent years, unlike other economies in the region.
The same is true for the growth forecasts for the Gross Domestic Product (GDP), as the Central Bank of Bolivia expects it to be 3.71% in 2024.
He Bolivian is the legal tender of Bolivia since 1987 and is divided into 100 centavos. Previously, the Bolivian peso was used but it was replaced. The Central Bank of Bolivia is the body in charge of regulating the issuance of currency.
As for manufacturing, the Bolivian currency stopped its minting and printing during the colonial era due to the lack of political interest, which would eventually cause coins and banknotes were created abroad due to the low price involved. In 2013, they were still being manufactured in countries such as the United Kingdom, France and Chile.
As for the economy, in 2014 Bolivia resorted to high public spending and increasing domestic credit to maintain its growth, but these decisions resulted in an increase in public debt and a reduction in international reserves.
As in other countries, the coronavirus pandemic severely affected Bolivia’s economy, although inflation was not as high as in other Latin American nations.
In 2022 Bolivia stood out for having a lower inflation rate than its neighbouring countriesthis is due to a response to fuel price subsidies and the fixed exchange rate of the dollar against the local currency; however, it has had to face a loss of international reserves and increased indebtedness.
Bolivia is also facing global efforts to shift to clean energy, so these conditions will force one of the world’s largest gas exporters to look for alternatives this year.
