Overview
- The government moved to a market‑driven float on Saturday, June 27, 2026, and the central bank updated its official rate to about 9.73 bolivianos per U.S. dollar, implying roughly a 30% loss in value from the previous buy rate.
- Bolivia abandoned the peg after foreign‑exchange reserves fell from a 2014 peak above $15 billion and a parallel dollar market pushed unofficial rates much higher than the official rate.
- Officials framed the shift as a step to normalize currency markets and strengthen Bolivia’s case for an IMF financing program reported to be between $2.5 billion and $3.3 billion.
- The announcement triggered social unrest: labor groups have blocked major roads in protest and President Rodrigo Paz declared a state of emergency to allow authorities to clear the blockades.
- The policy change reduces the pure hedging case for stablecoins but leaves uncertainty because a June 2024 lift of Bolivia’s crypto ban sparked a large surge in formal crypto use and several banks already offer USDT services.