Beginning crisis with rise in parallel dollar | Comienza la crisis con incremento del dólar paralelo

By Leyla Mendieta Cruz, Unitel:

“The crisis is beginning,” says Cadex regarding the rise of the parallel dollar

The president of the Chamber of Exporters, Logistics and Investment Promotion of Santa Cruz (Cadex), Oswaldo Barriga, insisted that it is necessary to change the economic model and to authorize exports of products that are currently restricted

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[Photo: Cadex] / Oswaldo Barriga, president of Cadex

On Tuesday, the dollar surpassed the Bs 15 mark and was quoted at Bs 15.73. In response, the president of the Chamber of Exporters, Logistics and Investment Promotion of Santa Cruz (Cadex), Oswaldo Barriga, stated that this situation is due to poor economic management, a model that is not working and is generating speculation and contraction. He said the announcement of the wage increase also affected the exchange rate fluctuation.

“A 10 and 5% increase only generates more inflationary pressure, more inflation… as long as Bolivia does not change its management model, it will have a situation. The crisis is beginning, it is starting to be felt in the pockets of Bolivians,” he said.

He added that the entire agri-productive chain faces some type of restriction, such as quotas and price bands, which he believes only generate speculation and lead various products to be sent abroad.

He emphasized that any intervention in production causes a decrease in output, which has coincided with the dollar fluctuation.

He stated that the solutions are to change the economic model, which is currently harming Bolivians, and to lift the export restrictions on products that are currently limited. “Bolivia needs dollars,” he insisted.

He argued that the Central Bank of Bolivia (BCB) has currently lost its independence and, for that reason, will not be able to implement a monetary policy that is effective for the Bolivian economy.

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