Bolivia central bank proposes converting gold reserves to dollars to defend exchange rate

Bolivia's central bank (BCB) proposes amending the legal floor of 22 tons of gold reserves to convert part of its gold holdings—which make up 82% of international reserves—into dollars, aiming to strengthen exchange-rate policy. The move signals acute dollar scarcity and pressure on the boliviano, with the central bank prioritizing liquidity over gold backing. Uncertainty remains over the scale of conversion and whether it will stabilize the currency or signal deeper reserve depletion.