Parallel dollar fluctuates and pressures for an increase are seen | Dólar paralelo fluctúa y ven presiones para alza

By Raúl Dominguez, El Deber:

Dólar paralelo fluctúa y ven presiones para alza

The shortage of foreign currency is also causing problems with private fuel imports. Photo: Fuad Landívar

As the day of the runoff election approaches, there is uncertainty about the measures the new government will adopt.

After several weeks remaining around Bs 12, the price of the parallel dollar in Bolivia began to fluctuate last Friday, reaching its highest rate so far this month on Saturday, at Bs 13.08, according to data from various electronic sites such as dolarboliviahoy.com.

As of last night, the buying price was Bs 12.91 and the selling price Bs 12.88. Meanwhile, the price of the cryptocurrency USDT, which maintains a rate parallel to the U.S. dollar, had risen to Bs 12.92 around 8:00 p.m. on Monday, according to usdtbol.com.

Economist Rubén Arias explained that political expectations surrounding the runoff election —to be held next Sunday— could cause another increase, though it won’t be the only factor. There are two others.

The second factor is that about 80 companies authorized to import fuel are demanding dollars to make those purchases, which is putting pressure on demand. “These companies are also buying dollars because there is no fuel, and that’s another factor pushing or supporting the rise of the dollar,” the economist emphasized.

The third factor is that market operators are speculating and selling dollars they bought at lower prices to take advantage of the exchange gap. “Many people who saw the opportunity to sell their dollars have already started offering them, and ordinary citizens have also begun to sell because they say, ‘I bought at 12.50 and can sell at 13 or 13.20.’ That’s why there was a slight drop (on Monday),” Arias added.

All because of the blockades

The Vice Minister of Strategic State Planning, José Siñani, reported that there are 19 pending external credit projects exceeding $1.66 billion in the Plurinational Legislative Assembly (ALP), which has had a significant impact on the national economy and the current shortage of dollars in the country.

“Since 2023, we’ve been struggling to get the approval of external financing loans that we’ve managed from various international organizations, and which are currently pending review or at different stages in the Legislative Assembly. We’re talking about 19 credit projects amounting to more than 1.66 billion dollars,” Siñani said in an interview with Bolivia TV.

He added that external financing is essential to obtain foreign currency and create a “much larger pool” from which greater disbursements can be made. This, in turn, would generate more foreign exchange to meet commitments and obligations such as fuel purchases.

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