Bolivia is preparing steps to unify its foreign-exchange system and is in discussions that could lead to an International Monetary Fund (IMF) financing program. According to reports, Bolivian officials tell investors that an IMF deal is likely to follow the implementation of currency reform rather than precede it. One outlet says the switch to a floating exchange rate could be introduced as soon as this week, while another reports that Bolivia is nearing agreement on an IMF program and is planning to end a longstanding dollar peg.
Both accounts tie the sequencing of the reforms to the broader goal of resolving market distortions created by the current regime. The dollar peg has been in place for more than 15 years, and officials frame the move to a floating exchange rate as a step toward FX unification. The reports also indicate that the government expects to sign IMF financing only after the exchange-rate change is carried out. No details are provided in the excerpts on the size or exact terms of the prospective IMF program.
