The Central Bank of Bolivia announced the successful completion on 16 October of a non-deliverable gold forward sale covering three tonnes of gold, an operation launched in April that generated more than USD 388 million in foreign currency to meet State obligations. The structure provided an upfront prepayment of around USD 270 million and a further USD 118.8 million at contract settlement, with the resources used to service external debt and fund fuel imports. To hedge against declines in the international gold price while benefiting from potential increases, the central bank bought a put option and used hedging and yield-generating instruments, reporting that the transaction resulted in no losses and captured the prevailing market price at settlement. The bank also stated it complied with the legal minimum of 22 tonnes of gold reserves and that Bolivia retained title to its gold holdings, and it referenced reporting the operation to the Plurinational Legislative Assembly under the disclosure requirements set out in Law No. 1503.
Central Bank of Bolivia 2025-10-17
Central Bank of Bolivia completes first non-deliverable gold forward sale raising more than USD 388 million in foreign currency
The Central Bank of Bolivia completed a non-deliverable gold forward sale of three tonnes, generating over USD 388 million to meet State obligations. The transaction included a USD 270 million prepayment and USD 118.8 million at settlement, with funds allocated to external debt servicing and fuel imports. The bank used hedging strategies to mitigate gold price fluctuations, ensuring no losses and compliance with legal reserve requirements, while retaining title to its gold holdings.