Bolivia’s central bank has launched a campaign to lure back an estimated $4 billion in US dollars held outside the formal banking system, promising that new foreign-currency deposits will no longer be subject to freezing.
The initiative represents a direct attempt to replenish domestic liquidity and restore confidence in the financial sector after years of strict capital controls that have driven citizens to hoard cash or move funds abroad.
The move comes as President Rodrigo Paz’s administration faces mounting economic headwinds.
Widespread road blockades and severe fuel shortages are currently exacerbating inflationary pressures across the country, creating an immediate challenge for the new government.
By guaranteeing the security of dollar deposits, authorities hope to incentivize the return of hidden capital to support domestic commerce and stabilize the banking system.
The promise to end deposit freezes marks a significant policy shift, addressing one of the primary grievances that fueled capital flight.