MercoPress. South Atlantic News Agency

Bolivian gov't planning new moves to tackle soaring US dollar

Cusicanqui believes that a trade surplus should result in more US dollars available

The Bolivian Government of President Luis Arce Catacora is taking bold steps to keep the exchange rate between the local currency and the US dollar from soaring any further, Planning Minister Sergio Cusicanqui said Sunday. “In view of the speculative scenario of the US currency, it is necessary to examine what is happening and take other measures from the Government,” the minister explained.

 The Financial System Supervisory Authority has been instructed to evaluate and propose actions to bring the currency exchange market back to normal standards. While Bolivia's Central Bank (BCB) holds an official parity of B$ 6.96 = US$ 1, black market exchange parlors speak of at least B$ 10 = US$ 1.

“Since April we have reached a balance in the trade balance and in May we achieved a surplus of US$ 68 million,” Cusicanqui stressed while claiming that these figures should translate into greater availability of US dollars in the Bolivian.

The official also admitted the Confederation of Private Businessmen of Bolivia had been summoned to assist the government take the necessary measures. He insisted that despite these nuisances, Bolivia's economy had managed to grow while keeping inflation reasonably low. He also argued that a recent increase in the price of imported goods was due to external factors, such as the increase in freight costs, which have caused a phenomenon of “imported inflation”.

As if he intended to throw fuel onto the first of his past friend Arce's administration, former President Evo Morales highlighted that the incumbent head of state lacked any emergency plan and that all public companies were in the red, which had been achieved purposely so they would need to be privatized again.

The disenfranchised Morales insisted that the Government's only plan was to keep him from running for office as authorities were in no way concerned over the country's future. In his view, Arce intends to return to the 1985 mindset when bankrupt public companies were found best to be passed onto private hands.

“I can even intentionally think that they are destroying the public companies to justify the right wing or the return of transnationals again. That is my imagination, just in case,” Morales argued.