Bolivia is reducing import tariffs by five percentage points across its entire tariff schedule, effective July 6, in a direct response to the economic turbulence following the abandonment of its fixed exchange rate regime.
The measure aims to mitigate the immediate price shock for consumers and businesses as the boliviano adjusts to a free-floating status for the first time in fifteen years.
The policy shift comes shortly after the central bank allowed the currency to float, initially setting the rate at 9.73 bolivianos to the US dollar.
By lowering the cost of imported goods, the government seeks to prevent a sharp spike in domestic inflation that could otherwise accompany the currency's depreciation.
This move signals a pragmatic approach to managing the transition from a long-standing peg to a market-determined exchange rate.
The tariff reduction reflects the broader challenges facing Latin American economies as they navigate shifting monetary policies and external pressures.