Julio 16, 2005
Exchange Rate
Today's Los Tiempos reported that the Boliviano-Dollar exchange rate actually dropped for the first time in ages. It seemed that the exchange rate continued to rise on a fairly consistent basis. I remember when it was 5.35 Bs = 1 USD back in the late 1990s. It dropped one point to 8.09 Bs. = 1 USD.
This also signals that the exchange rate that is determined by the Banco Central is currently competitive that also favors Bolivian exports and national production that must compete with imports.
For the first time since 1985, the banks have been selling more dollars, then they have been buying, which signals more confidence in Bolivian currency, right?
Posted by eduardo at Julio 16, 2005 02:51 PM
Comments
No kidding. It is good news, because Bolivia has a kind of mixed exchange rate system. It is basically a slow managed devaluation where the dollar gets more expensive over time. If the value of the Boliviano starts dropping, it is actually not following official policy. :-)
It shows some stability.
Posted by: Miguel (MABB) at Julio 16, 2005 06:41 PM