President of the BCB assures that the Bolivian is a 'strong currency' and there is no need to chase the dollar

 "There is no need for them to use the dollar because our national currency, the Bolivian, is a strong currency." This is how the President of the Central Bank of Bolivia (BCB), Edwin Rojas, called on the population to avoid seeking refuge in the U.S. currency and to maintain confidence in the Bolivian currency.

"It is not necessary for us to be chasing the dollar. Practically 100% of transactions are in the national currency," he emphasized.

The President of the BCB spoke out regarding the emergence of a parallel dollar market where the U.S. currency is sold at a higher price than in the formal market.

According to Rojas, individuals influenced by speculation in the dollar will end up losing.

He explained that buying the dollar in the parallel market would result in a loss in two ways: first, because it was acquired at a high price, and second, because the foreign currency is depreciating as the United States has had higher inflation than Bolivia.

In addition, those holding dollars would be unable to invest them in instruments offered by the national financial system because the currency used is the Bolivian boliviano.

He also mentioned that all activities, from shopping to going to the movies, are conducted in Bolivian bolivianos.

The President of the BCB highlighted the measures the government is taking to normalize the demand for dollars after a process he considered speculative.

Nevertheless, he guaranteed the flow of foreign currency within the framework of this year's budget forecasts.

Rojas also assured that there would be no change in the exchange rate policy, considering the economic growth and inflation expectations. He also pointed out that the oversupply of dollars would normalize when the population understands that the economy has sustainable growth and sees the results of industrialization.

Reserves

The President of the Central Bank addressed the fact that the Reserves International currencies were reduced to 166 million dollars.

He clarified that this amount in the Central Bank Reserves is used for public sector imports, while the majority of Bolivia's imports are from the private sector and are channeled through the financial system.

He detailed that the BCB uses its currencies for imports such as medicines, as well as for fuel subsidies and debt payments.