The Central Bank of Bolivia released an assessment by acting president David Espinoza Torrico warning that net international reserves are in a critical state and that the public sector fiscal deficit persists, prompting a revision of the Fiscal-Financial Programme to reorient macroeconomic policy. The update also outlines a new direction for exchange rate policy and announces the full restoration of access to economic and financial information through the central bank’s website. The diagnosis links the post-2019 decline in net international reserves to a depletion of foreign currency, the execution of atypical operations and the pledging of gold reserves. It also attributes the current position of the public finances to an extended period of fiscal deficits, describing the past 11 years of deficits as creating the conditions for the country’s largest fiscal crisis since the 1980s. In response, the Central Bank of Bolivia and the Ministry of Economy and Public Finance signed a revised Fiscal-Financial Programme for the final part of 2025, intended to anchor macroeconomic policies in a medium-term fiscal framework and support the sustainability of public finances. On exchange rate policy, the central bank set out a shift toward transitioning to a more flexible exchange rate regime for the first time in 20 years, with stated objectives including balancing the balance of payments, reducing inflation and mitigating external shocks; an initial step was the publication of a reference US dollar value for external transactions, which the central bank reported had an immediate positive market impact. The central bank also said it has fully restored statistical information on its website and will add new data and publications.
Central Bank of Bolivia 2025-12-04
Central Bank of Bolivia sets out revised fiscal-financial programme and move toward a more flexible exchange rate regime amid critical net international reserves
The Central Bank of Bolivia, led by acting president David Espinoza Torrico, warns of critical net international reserves and a persistent public sector fiscal deficit, prompting a revision of the Fiscal-Financial Programme. The bank plans to transition to a more flexible exchange rate regime to balance payments, reduce inflation, and mitigate external shocks, with an initial positive market impact from publishing a reference US dollar value. Additionally, the central bank has restored full access to economic and financial information on its website.