Central Bank of Bolivia Selling Dollars Directly to Citizens as Devaluation Fears Rise – Economics Bitcoin News
As an affiliate, we may earn from qualifying purchases. We get commissions for purchases made through links on this website.
Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
In response to rising fears of devaluation of its currency, the Bolivian government has taken the unusual step of directly selling dollars to its citizens. The move comes as Bolivia’s currency, the boliviano, has come under considerable pressure in recent months due to a combination of factors such as international economic uncertainty and the coronavirus pandemic.
The decision was made by the Central Bank of Bolivia, which announced that it would be selling dollars directly to individuals in order to “provide greater access to foreign currency for the population”. According to reports, this is the first time in over a decade that the central bank has directly intervened in the forex market in this way.
The move is aimed at reassuring ordinary Bolivians that they will have access to foreign currency and helping to allay fears of devaluation. By selling dollars directly to citizens, the government is effectively creating a guaranteed supply of foreign currency, which should help to reduce the risk of the boliviano losing value.
For many Bolivians, access to foreign currency is critical. This is particularly true for those who need to purchase goods or services from abroad, such as medical supplies or education fees. By making it easier for citizens to access foreign currency, the government is hoping to reduce the impact of any potential devaluation.
At the same time, however, there are concerns that the move could exacerbate inflationary pressures. Since the government is effectively creating a new source of demand for dollars, this could increase the price of dollars on the black market, which in turn could push up prices for imported goods.
Overall, the move is seen as a sign of the government’s willingness to take action to protect the economy in the face of challenging circumstances. While there are risks associated with the policy, it is hoped that the benefits of providing reassurance to citizens and reducing the risk of devaluation will ultimately outweigh them.
As the coronavirus pandemic continues to unfold, many countries are facing economic uncertainty and currency pressures. While Bolivia’s decision to sell dollars directly to citizens may be an unusual move, it is an example of the kind of innovative policies that may be necessary to navigate these difficult times.
Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
Source link
