Bolivia’s finance minister, José Luis Lupo, has declared that an agreement with the International Monetary Fund is "indispensable" for the country, as a deepening foreign-exchange crisis and losses at state-owned firms continue to strain the economy.
The statement marks a significant escalation in La Paz’s public stance on securing external financial support, following the recent abandonment of a 15-year fixed exchange rate regime that had anchored the boliviano to the US dollar since 2011.
The IMF has previously noted that rising global fuel prices are beginning to affect Bolivia’s economy, even as headline inflation remained contained at 4.
The central bank allowed the currency to float freely for the first time in over a decade, setting an initial rate of 9.73 bolivianos per dollar.
However, the transition has been turbulent, with persistent dollar shortages and rising inflationary pressures complicating the adjustment.
Lupo’s comments suggest that domestic policy measures alone are insufficient to stabilize the macroeconomic environment, pointing to a likely request for IMF assistance to restore market confidence and secure foreign reserves.
The IMF has previously noted that rising global fuel prices are beginning to affect Bolivia’s economy, even as headline inflation remained contained at 4.0% in June.