The Americas | Out of gas and good ideas

Bolivia is on the brink of an economic crisis

After two decades of statist policies, the country’s economic model is bust

Residents wait in line outside of the Bolivian Central Bank in La Paz, Bolivia, on Wednesday, March 29, 2023. Bolivia's central bank started to schedule dollar sales for the next few weeks as it tries to contain greenback demand amid dwindling international reserves. Photographer: Marcelo Perez del Carpio/Bloomberg via Getty Images — Image: Getty Images

Apr 18th 2023|La Paz

“There is no shortage of dollars” announces a banner on the homepage of Bolivia’s central bank. “Our economy is strong, solvent and stable.” The need for the post suggests otherwise. For the past few weeks, Bolivians have desperately been trying to buy dollars. In February the central bank stopped publishing data on its foreign-currency reserves. In March it took the unusual step of selling greenbacks directly to the public after exchange houses started to run out. When the queue got too long the bank made Bolivians book appointments online. The next available one is in July. Investors are spooked. Government bonds maturing in 2028 have lost a third of their value since January.

This article appeared in the The Americas section of the print edition under the headline “Out of gas and good ideas”