The plea was dramatic: If Bolivia’s government didn’t help the aviation industry to face urgent dollar-payment demands from suppliers, the landlocked country could end up without flights and isolated.
It was the latest dismal event in the nation’s financial meltdown: an old-fashioned balance of payment crisis triggered by the lack of international reserves to defend an exchange rate fixed to the US dollar since 2011. With international reserves at about a tenth of their $15 billion peak in 2014, the government of President Luis Arce is safekeeping every dollar bill and gram of gold, depressing activity, sparking fuel shortages and stoking social unrest — all in the name of avoiding a devaluation of an untenable 6.9 boliviano-per-dollar peg.
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Publish date : 2024-11-19 21:30:00
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