Bolivia Abandons 15-Year Fixed Exchange Rate, Floats Dollar at 40% Devaluation on June 26

According to Bolivia's Ministry of Economy Resolution 245 issued on June 26, the country abandoned its 15-year fixed exchange rate regime of 6.96 bolivianos per dollar, adopting a floating system that opened at 9.73 bolivianos, implying a 40% devaluation.

Economy Minister José Gabriel Espinoza stated that the Central Bank of Bolivia will reduce large-scale currency interventions, allowing other economic sectors to generate their own foreign exchange to improve the balance of payments and foreign reserve accumulation. The previous fixed-rate regime had created persistent dollar shortages in the market, driving Bolivians toward stablecoins as dollar proxies.