Bolivian Chamber of Deputies approves gold bill aimed at strengthening reserves

The Bolivian Chamber of Deputies approved the gold purchase bill to strengthen the country’s international reserves yesterday, Friday, after a legislative session that lasted more than 15 hours.

The norm, approved by 54 votes in favor, 24 against, and 41 blank ballots, must now be reviewed and approved by the Senate to be enacted by the country’s president, Luis Arce.

In his speech before the chamber plenary, the Minister of Economy and Public Finances, Marcelo Montenegro, assured that the law would allow recovering control and sovereignty over the production of the metal, besides contributing to providing liquidity in the international reserves.

He explained that the law authorizes the Central Bank of Bolivia (BCB) to invigorate international reserves as an additional buyer in the production chain.

In addition, he recalled, it authorizes the BCB to carry out financial operations with the metal reserves in international markets, as most of the central banks in the region and the world currently do.

Montenegro reiterated that this would allow the expansion of liquidity-strengthening tools, a widely accepted practice used by central banks worldwide.

In the same sense, the Minister of Mining and Metallurgy, Ramiro Villavicencio, stated that the approval by the Chamber of Deputies is a “big step” in the control policy to improve the country’s economic development.

He considered that the legal framework would allow the improvement of foreign currency income for the State and royalties for the producing regions.

Villavicencio said the portfolio under his charge would also work on prospecting, production, and commercialization of the metal in Bolivia.

In 2022, the country’s gold exports reached 53.4 tons, valued at 3,073 million dollars, according to data from the mining statistics yearbook.

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