Bolivia secures $1.9bn IMF deal as boliviano shifts to float
Bolivia has reached a staff-level agreement with the International Monetary Fund for a facility worth US$1.9 billion, a deal officials say could unlock up to US$5 billion in additional financing. The agreement comes as the country ends its parallel-exchange system, known as the bolsín, raises fuel prices and allows the boliviano to float. The changes mark a significant shift in Bolivia's economic policy.
Bolivia has reached a staff-level agreement with the International Monetary Fund for a financing facility worth US$1.9 billion, according to Rio Times. Officials say the deal could pave the way for up to US$5 billion in further support as the country works to stabilize its economy.
As part of the agreement, Bolivia is ending its bolsín, the parallel foreign-exchange mechanism the central bank had used to manage a persistent dollar shortage, and allowing the boliviano to float. Fuel prices, long subsidized by the state, are also set to rise, a step economists have long said is needed to ease pressure on public finances.
The measures represent one of the most significant economic policy shifts in Bolivia in years, coming after months of currency scarcity and rising inflation pressures. Officials have not yet detailed the full timeline for implementation, and the IMF facility still requires further steps before funds are disbursed.
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