Bolivia's Ministry of Economy and Public Finance, together with the Central Bank of Bolivia and the Financial System Supervisory Authority, announced two measures to normalise foreign currency flows: a phased return of retained US dollar deposits in the financial system and the restoration of international remittance sending and receipt through banks. The deposit programme covers about USD 933 million owed to individuals, while remittances will again be processed through the financial system at the reference buying exchange rate. Depositors will be able to withdraw funds under the same conditions in which they were placed, starting on 15 July and proceeding in stages. The announced schedule allows withdrawals of USD 1,001 to USD 3,000 from 15 July and USD 3,001 to USD 5,000 from mid-August, with later tranches following over a one-year period. The authorities linked the measure to a broader plan to mobilise more than USD 2 billion, including issuance of securities to support market liquidity. For remittances, the measures remove restrictions on receiving money from abroad directly into bank accounts and allow outward remittances to resume through formal channels. The authorities said Bolivia had previously received close to USD 1 billion a year in remittances and presented both decisions as part of a wider economic stabilisation plan to normalise domestic financial operations, reconnect Bolivia with the international financial system and reduce informality in foreign currency transactions.

Original source View in tracker