Industrialists reveal that they buy dollars at the parallel market rate to maintain production in Bolivia | Industriales revelan que compran dólares a costo del mercado paralelo para mantener la producción en Bolivia

By Juan Carlos Véliz, Eju.tv:

The dollar shortage in Bolivia began in February of last year. / Photo: Archive

“Normally we had 30 or 60 days to pay (the suppliers abroad), but due to the delays that have been occurring since last year, they now pay and can collect the merchandise,” said the president of the CNI.

Bolivian industrialists face a complex situation for importing goods due to the dollar shortage. They have to buy at the parallel market cost, which currently has rates of up to 12 bolivianos, and pay bank transfer fees that have also increased in order to maintain national production. Additionally, their suppliers have cut credit lines and demand cash payments to send the merchandise.

“It’s still complex; it’s not easy to access dollars. We still have to schedule payments, which is creating a conflict for businesses, especially for industry. A good portion of our inputs come from abroad. We have to buy intermediate goods, capital goods, spare parts, and others, and as I said, it is taking longer than expected. In many cases, some industries and companies have lost the credit line they had with suppliers. Normally we had 30 or 60 days to pay, but due to the delays that have been occurring since last year, they now pay and can collect the merchandise,” explained Pablo Camacho, president of the National Chamber of Industries (CNI), in an interview with the program “No Mentirás.”

“We are making every effort not to stop our production apparatus (…); we have to pay for the dollars according to what we can buy, and if that’s 10, 11, or 12 (bolivianos), we are paying it plus the transfer cost,” the executive revealed.

Bolivia faces an economic crisis due to various factors such as the high fiscal cost, the drop in exports, the decline of international reserves, the lack of dollars, fuel shortages, and others.

This situation has tested several sectors, such as industrialists, who must find ways to maintain the production of the industries operating in Bolivia.

The CNI will participate in the meeting convened by President Luis Arce for tomorrow, Wednesday, at the Casa Grande del Pueblo, with the country’s productive sectors to address the complex situation facing the economy.

Camacho hopes that “concrete decisions” will be made at that meeting, such as a “legal framework” and the modernization of regulations like the arbitration law, tax code, labor law, and other regulations. “These are basic and simple issues that the Government should be able to resolve,” he suggested.

Due to the dollar shortage in the official financial system, the parallel market has strengthened in Bolivia, with rates reaching up to Bs 15 per dollar. Although there has been a decline in recent days, it has not influenced the increase in product prices.

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