Bolivia inflation 1% for past year versus Latin America average of 10%The Boliviano is not fixed in

Jun 10, 2022
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Bolivia inflation 1% for past year versus Latin America average of 10%

The Boliviano is not fixed in exchange to the USD. Their exchange was established over 10 years ago when the authorities there injected dollars into the countries reserves. The money came from great wealth that came from nationalizing petroleum production (Bolivia still has a state monopoly in petrol and distributes it to the country, and this has totally absorbed the impact of changes in gas price). It reduced costs of imported products. Bolivia ALSO produces most of the products Bolivians consume.

Bolivia also has certificates of exportation granted by government. When that product is not available in proper supply for the internal market at a price the government considers appropriate, the government can deny a certificate for exportation.

For this low inflation, Bolivia is considered by some to have a lot of debt.

Is it a disincentive to production in Bolivia? Does the State spend more than it brings in? Will the country just consume its reserves?

The government isn't going to change policy. It says that would be to translate the burden of inflation onto the majority of the population.

Bolivia is said to be the only Latin American country that is controlling inflation.

#Bolivia #Globalization
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<div><b>Bolivia inflation 1% for past year versus Latin America average of 10%</b></div><div><br></div><div>The Boliviano is not fixed in exchange to the USD. Their exchange was established over 10 years ago when the authorities there injected dollars into the countries reserves. The money came from great wealth that came from nationalizing petroleum production (Bolivia still has a state monopoly in petrol and distributes it to the country, and this has totally absorbed the impact of changes in gas price). It reduced costs of imported products. Bolivia ALSO produces most of the products Bolivians consume. <br></div><div><br></div><div>Bolivia also has certificates of exportation granted by government. When that product is not available in proper supply for the internal market at a price the government considers appropriate, the government can deny a certificate for exportation. <br></div><div><br></div><div>For this low inflation, Bolivia is considered by some to have a lot of debt. <br></div><div><br></div><div>Is it a disincentive to production in Bolivia? Does the State spend more than it brings in? Will the country just consume its reserves? <br></div><div><br></div><div>The government isn't going to change policy. It says that would be to translate the burden of inflation onto the majority of the population. <br></div><div><br></div><div>Bolivia is said to be the only Latin American country that is controlling inflation. <br></div><div><br></div><div> </div><div><a href="http://landandseajournal.com/post/hashtag/Bolivia"><a href="http://landandseajournal.com/post/hashtag/Bolivia">#Bolivia</a></a> <a href="http://landandseajournal.com/post/hashtag/Globalization"><a href="http://landandseajournal.com/post/hashtag/Globalization">#Globalization</a></a><br></div>
Bolivia inflation 1% for past year versus Latin America average of 10%

The Boliviano is not fixed in exchange to the USD. Their exchange was established over 10 years ago when the authorities there injected dollars into the countries reserves. The money came from great wealth that came from nationalizing petroleum production (Bolivia still has a state monopoly in petrol and distributes it to the country, and this has totally absorbed the impact of changes in gas price). It reduced costs of imported products. Bolivia ALSO produces most of the products Bolivians consume.

Bolivia also has certificates of exportation granted by government. When that product is not available in proper supply for the internal market at a price the government considers appropriate, the government can deny a certificate for exportation.

For this low inflation, Bolivia is considered by some to have a lot of debt.

Is it a disincentive to production in Bolivia? Does the State spend more than it brings in? Will the country just consume its reserves?

The government isn't going to change policy. It says that would be to translate the burden of inflation onto the majority of the population.

Bolivia is said to be the only Latin American country that is controlling inflation.

#Bolivia #Globalization

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