Parallel Dollar Nears Bs12 Amid Economic Uncertainty | Dólar paralelo se acerca a Bs12 en medio de incertidumbre económica

By El Deber:

With the parallel dollar hovering around Bs 12, an upward trend is warned due to economic uncertainty

El dólar en el mercao paralelo vuelve a subir en Bolivia/Imagen referencial
The dollar rises again in Bolivia’s parallel market/Reference image

The exchange rates in the black market and on unofficial websites range between Bs 11.50 and Bs 11.70. Some political figures even spoke out this Friday.

The price of the dollar in the parallel market is nearing Bs 12 again, raising concerns about a new surge in the value of the U.S. dollar, which already exceeded Bs 15 in late July and early August.

In fact, the “blue dollar” in Bolivia—what some unofficial websites call it—was priced at Bs 12.10 for purchase and Bs 12.30 for sale at noon this Friday.

Economist Fernando Romero stated that there is a new “upward trend” in the price of the parallel dollar in several regions of the country for sale. “This is due to the uncertainty and negative expectations about our economy in the short term from different economic agents, where politics and social conflicts have had a negative influence.”

With a graph showing the fluctuation of a cryptocurrency price that mimics the variation of the dollar’s cost on the street, Romero said it could be “referential” for the black market. However, according to a survey conducted in several cities, the president of the Tarija Economists’ Association noted that “the dollar in the black market has been increasing in price, both in exchange houses and street currency traders.”

“One factor that has also contributed to the relatively higher price of the dollar in the parallel market in the last two weeks is the government’s approval, through DS 5271, of the free importation of fuels for the private sector. This has sparked greater speculation because the market now knows of a greater need for U.S. dollars to buy diesel and gasoline from abroad,” he emphasized.

But also—he added—since this policy is temporary, and has not improved the severe fuel shortages in the country so far, and this won’t happen in the short term, the parallel dollar market will see more demand due to the lack of a sustainable response to this problem. There will be more people demanding dollars due to the looming fear of fuel price hikes, devaluation, and higher inflation in our economy.
dólar
For his part, businessman Samuel Doria Medina assured on his Facebook account that “the price of the dollar has risen again, now it is at Bs 11.70.”

“Some believed the dollar would stabilize for a long time, after being at Bs 10.50 for over a month, but that’s impossible without structural measures to rebalance the relationship between supply and demand. Today, there are practically no dollars to buy in the market, so the pressure for price increases is strong. Agents try to delay their decision to buy, but when they can no longer postpone it, they pay more to obtain foreign currency. This is how devaluation continues,” he stated.

The elected governor of Santa Cruz, Luis Fernando Camacho, also commented on the situation, emphasizing that the economic crisis in Bolivia “is structural and deep,” after it was reported that the exchange rate of the dollar in the black market had risen from Bs 10.50 to Bs 11.50.

The crisis is not accidental, it is structural and deep. Bolivia has not yet seen the worst of this crisis or its consequences, the government is ‘buying time by kicking the ball forward’ and has already shown it will not face it,” Camacho said in a post on his social media.

Leave a comment