Bolivia opposes the introduction of the US dollar and has no intention to transition to the US dollar as its primary currency, fearing potential negative consequences for its citizens, according to Bolivian Economy Minister, Marcelo Montenegro.
The minister’s remarks were in response to questions about a proposal similar to that of the Argentine presidential candidate, Javier Milei, who suggested using the U.S. dollar in Argentina to mitigate inflation.
Montenegro mentioned that such an approach would mean relinquishing independent monetary policies, potentially making citizens susceptible to external economic challenges.
“We implement a ‘bolivianization’ strategy in Bolivia, enabling our Central Bank and the financial sector to facilitate transactions in our national currency and uphold a proactive monetary policy,” he detailed.
He further emphasized the policy’s success, noting it allows the nation to manage its economic activities and control inflation effectively.
Bolivia currently records South America’s lowest inflation rate, standing at 1.16% as of July, making it one of the lowest in Latin America and globally.