Neither the US issues gold-backed dollars, the BCB issues fiat money – eju.tv

Neither the US issues gold-backed dollars, the BCB issues fiat money – eju.tv
Neither the US issues gold-backed dollars, the BCB issues fiat money – eju.tv

He indicated that the destruction of banknotes from 2016 to 2024 amounts to 803 million pieces, equivalent to 34.317 billion bolivianos.

President of the Central Bank of Bolivia, Edwin Rojas. Photo: Internet

Fuente: ANF

The president of the Central Bank of Bolivia (BCB), Edwin Rojas, stated that “not even” the United States that issues dollars are backed by gold, and that in economies like ours, the BCB has the power to issue “fiduciary money” for transactions in its different cuts.

“Today, not even the United States, which issues dollars, the banknotes that we all sometimes want to have for whatever reason, are backed by gold, because since that period, since the 1970s, we have been talking mainly about what fiduciary money is. That is, the money that states, like the Bolivian economy, have the power to issue so that their population can carry out the transactions they see fit. In the Bolivian State, the entity with which they issue that money is the BCB, in its different courts,” he said at a press conference.

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He said that the issue of banknotes has been linked to what they call an “inorganic” issue of money in our economy. “I clarified last week that this category of inorganic issue practically does not exist, because on the contrary, there would be an organic issue when all the assets were matched with the liabilities, and this has occurred mainly in the period where the gold standard was in force, where for a certain amount of gold, a certain amount of banknotes circulated, and this has occurred in history, after the Second World War, until the 1970s,” he added.

Rojas said that they are trying to link what is an administrative process, replacement of banknotes, which began in 2022, to an inorganic issuance process, and that “there is” a mistake in conceptual terms.

He indicated that the number of bills being purchased is 321 million in different cuts, which is equivalent to about 18 billion bolivianos in monetary terms; and that these bills will be in circulation until the end of the month.

He said there are two reasons why banknotes need to be replaced: on the one hand, dirt, graffiti and discoloration; and on the other hand, scratches, mutilations, holes and repairs of different cuts.

He indicated that the destruction of banknotes from 2016 to 2024 amounts to 803 million pieces, equivalent to 34.317 billion bolivianos.

/Era

BCB files criminal complaint with the Prosecutor’s Office against those who declared that banknotes were printed

 
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