Businessmen and Bolivian Government foresee that gold law will strengthen international reserves and growth
The approval and enactment of the Gold Purchase Law will contribute to strengthening the Net International Reserves (NIR), the recovery conditions and the economic growth of Bolivia, highlighted this Saturday by governmental sources, businessmen and exporters.
Through a public statement, the Confederation of Private Businessmen of Bolivia (CEPB) expressed satisfaction and valued the law’s enactment to purchase and sell precious metals.
“The enactment of Law 1503 to strengthen the RIN is a measure that we value as necessary and timely,” the message states.
On Friday 5, in the early morning hours, the Chamber of Senators approved the law and sent it to the Executive for its enactment.
CEPB considers that this norm and other official measures will stabilize the national economy to recover the Andean country’s economy and face the shortage of dollars.
In turn, the presidential spokesman, Jorge Richter, emphasized this Saturday that the gold purchase law constitutes the tool to overcome the foreign currency deficiency from two fronts, monetization of reserves and purchase of gold in national currency.
“There the country has a tool so that these facts and situations of the past days that we have known, difficulties in the production of North American currencies are not repeated”, he explained.
Richter explained that the State could “monetize a part of its reserves to overcome this economic illiquidity bump in terms of access to the North American currency” and clarified that it is “a moment of illiquidity, not insolvency”.
Richter explained that under the legislation above, the issuing entity could buy gold in national currency and exercise control to avoid smuggling of the precious metal.
For its part, the Bolivian Institute of Foreign Trade (IBCE) stated that the implementation of the legal measure would allow a return to normality, with greater availability of dollars in the financial system to meet the foreign exchange needs of economic operators and to reduce the over-demand and speculation for the U.S. currency.
The general manager of IBCE, Gary Rodriguez, suggested reinforcing government measures with a “confidence shock” through a public-private agenda that generates the necessary conditions for Bolivia to export sustainably.
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