The economic crisis that is being experienced in Bolivia has produced a shortage of dollarsleaving the Peruvian Sun as the only alternative. This has caused the Peruvian currency to increase its value in the exchange market and the Bolivian press assures that the Peruvian sol has become the “new dollar” within the highland country.
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“The Peruvian sun becomes the new dollar,” the newspaper La Razón headlines its Sunday front page.
The media points out that “given the scarcity of the US currency, people opt for the Peruvian currency.” Likewise, he adds that “merchants buy soles to exchange them for dollars in Peru.”
The increase in demand for soles has caused this currency to skyrocket in exchange offices. According to the official exchange rate, S/ 1 is equal to 1.8 bolivianos (Bs). However, in exchange offices, the Peruvian currency is worth about 3 bolivianos, as a result of the increase in demand for the Peruvian currency.
In that sense, the news indicates that Bolivians benefit from the Peruvian exchange rate, since they buy soles and then sell them in exchange for dollars on the border with our country.
The media warns that to buy 100 Peruvian soles in Bolivia, which is equivalent to US$26.7, you must pay 180 bolivianos, according to the official exchange rate. While, to obtain that same amount of dollars directly in the parallel market, the Bolivian citizen will have to spend 320.4 bolivianos.
“In addition, given the speculation in dollars, some sectors have chosen to make their savings in soles or use them in commercial transactions, further strengthening their demand, which is taken advantage of by free traders,” the newspaper indicates.
The rise of the sun against the Bolivian can also harm the highland country due to the increase in prices of products that are imported from Peru.
Bolivian crisis
Bolivia is experiencing a dramatic economic crisis that extinguished what was once falsely called the “Bolivian miracle.” For more than two decades, Evo Morales It implemented a protectionist and subsidy economic model, which was financed by gas exports.
However, after the nationalization of this resource, state control meant that no more exploration was carried out and, therefore, the gas in the exploited fields was exhausted.
In 2014, Bolivia exported hydrocarbons for more than US$6 billion, while in 2023 it only exported a little more than US$2 billion.
With the fall in this income, the Bolivian government tried to maintain the official exchange rate, as well as other subsidies, using international reserves, which have been falling since 2015. In 2023, Bolivia closed the year with US$ 1,709 million in RIN , while in 2014 its reserves were US$ 15,122 million.
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