By Juan Carlos Salinas, El Deber:

Dólar paralelo

The parallel dollar is hovering around Bs 18, after reaching Bs 19 /Photo: Ricardo Montero

The U.S. currency reached Bs 19, then dropped to Bs 18, and is currently trading at Bs 17.92 for sale and Bs 17.76 for purchase

After several days of fluctuations in the exchange rate of the parallel dollar, its price has, for the moment, settled near 18 bolivianos.

Between Monday, May 12 and Thursday, May 15, the U.S. currency rose from 16 to 19 bolivianos, causing concern among economic agents involved in international trade.

For Gary Rodríguez, general manager of the Bolivian Institute of Foreign Trade (IBCE), this variation in the price of the parallel dollar does nothing but generate uncertainty in the processes of importing supplies and production.

“Certainly, the rise in the dollar will cause production costs to increase. Companies can no longer continue absorbing the price increases of various inputs and capital goods,” said Rodríguez.

For Carlos Arana, from the Populi Study Center, the fluctuating value of the foreign currency will inevitably impact the cost of living for Bolivians.

The price of food and services will rise, and that will affect people’s purchasing power. Changing this scenario requires structural measures that will come with political and social costs,” the economist noted.

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