Bolivia Abandons Fixed Exchange Rate, Shifts to Flexible Regime Amid Crypto Boom

Bolivia has abandoned its fixed exchange rate of 6.96 bolivianos per US dollar after 15 years, switching to a flexible market-driven floating regime on May 5.

The country's foreign reserves had plummeted from above $15 billion in 2014 to much lower levels, leaving the central bank without the means to defend the rate.

This change is part of a broader economic stabilization push that includes potential engagement with the International Monetary Fund due to mounting fiscal deficits making the status quo untenable.

Bolivia's crypto landscape has also undergone significant changes. The country maintained a decade-long ban on virtual assets until June 2024, when restrictions were lifted through Board Resolution No. 082/2024.

Crypto transaction volumes surged from $46.5 million in the first half of 2024 to $294 million in the first half of 2025, a more than 530% year-over-year increase.