The rise in the dollar will increase external debt and imports | Repunte del dólar encarecerá deuda externa e importaciones

  • Experts from professional associations in Tarija and Santa Cruz warn that Bolivia will eventually have to pay a higher cost and that a monetary policy is urgently needed to reverse or stabilize the country’s economic situation.
The scarcity of the US dollar could have negative effects on the country, according to experts.

The price of the dollar is rising, causing global distress, so economists warn that this situation will increase external debt and imports for several countries, including Bolivia.

Currently, according to the finance specialized site Bloomberg Line, countries burdened with external debt remain at risk, with Maldives and Bolivia particularly vulnerable if the strength of the dollar persists.

The president of the College of Economists of Tarija, Fernando Romero, stated that Bolivia will eventually have to pay a higher cost by losing purchasing power, as there is already an increase in prices of some products.

He also argued that there is already a devaluation of the currency due to national and imported inflation, due to the shortage of dollars.

Meanwhile, economic analyst and former director of the Central Bank, Gabriel Espinoza, pointed out that to date, he is not aware of any unconventional policy applied by the Central Bank, the only one registered was in 2020, during the transitional government.

In addition, Espinoza believes that the Government is mistaken in its definitions and this seems to be due to the low technical level of the personnel working at the Central Bank.

On the other hand, the president of the College of Economists of Santa Cruz, Claudia Pacheco, warns that the rise in the dollar in the global market will increase external debt, which must be paid in dollars, and will also affect the price of imports, directly impacting the population.

“To Bolivia, which currently has a structural problem due to the lack of dollars, it will be more expensive to obtain this currency to pay off the debt,” said the economist to Red Uno.

Pacheco stated that the appreciation of the dollar will complicate the situation in Bolivia, “unless the Government takes on some monetary policies that can alleviate the situation.” (EL DIARIO/Red Uno)

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