Bolivia’s nearing elections will shape economic policy

Significance Faced with the diminution of foreign currency reserves, the government has taken steps to encourage exporters to repatriate the dollars they earn abroad and place them within the central bank (BCB). Growth in 2023 appears to have been driven by domestic demand, given the shortfall of export earnings. Impacts The gap between the official and unofficial exchange rates will not widen much further in the short run. The fall in gas exports will negatively impact the government’s tax receipts. Bolivia stands to benefit from any increase in mineral and hydrocarbons prices worldwide.