Bolivia’s crisis shows the limits of left-wing populism
The country is running out of money. It should serve as a warning to Latin America
For several weeks extraordinary scenes have been taking place in Bolivia. As we report, last month the central bank started selling dollars directly to the public after it appeared that exchange houses had run out of greenbacks. The queues to buy them stretched along the streets of La Paz, the capital. The central bank has stopped publishing data on its foreign-currency reserves, suggesting that it has perilously little hard cash left. The price of government bonds has collapsed as investors flee: a bond due in 2028 is now trading at just 48 cents on the dollar.
This article appeared in the Leaders section of the print edition under the headline “On the brink”
Leaders April 22nd 2023
- How to worry wisely about artificial intelligence
- Ukraine’s coming counter-offensive may shape its future—and Europe’s
- Bolivia’s crisis shows the limits of left-wing populism
- In Sudan and beyond, the trend towards global peace has been reversed
- Why America will soon see a wave of bank mergers
- Why the world should welcome competition from Chinese carmakers
From the April 22nd 2023 edition
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