Continuing with implementation of the 10 measures announced by the Government to palliate the country’s exchange difficulties, the Central Bank of Bolivia (BCB), in coordination with the Bolivian Association of Banks (ASOBAN), informed the public that structuring had been completed for the BCB Dollar Bond to be issued today, February 27, 2024, throughout national territory. The news came in Press Release CP11/2024 dated February 24, 2024, published on the BCB portal.

Specifically, the BCB Dollar Bond’s structuring and issuance contribute are part of the fulfillment of the agreement reached by the National Government and the Bolivian business community. The agreement reflects ten measures announced by the National Government to address the exchange and dollar liquidity difficulties the country is facing. 

The BCB Dollar Bond was presented as a safe and reliable savings alternative for potential investors. Following are the chief features of this financial alternative.

  • The BCB will issue bonds in dollars to individuals and legal entities.
  • Sales will be made through BCB authorized and approved channels and through certain ASOBAN member banking entities.
  • The BCB Dollar Bond will be exempt from payment of the Financial Transactions Tax (ITF); payment of principal and interest will be in dollars, and bonds will not be negotiable or redeemable.
  • The BCB Dollar Bond offering will be in effect until August 30, 2024, with the following interest rates:  
Term 3 months 6 months 1 year 2 years 3 years
Rate 4,5 % 5,0 % 6,0% 6,25% 6,5%

As mentioned above, the National Government and the Bolivian business community are moving forward with implementation of the measures agreed to for dealing with the country’s exchange difficulties. This measure focuses on attraction and bankarization of US currency in circulation that still remains outside the system, by offering interest rates exempt from payment of the ITF tax.

Finally, it is important to mention that this bond will initially be sold at BCB customer service windows in the city of La Paz, and at agencies of Banco Unión S.A. and Banco Ganadero S.A. Later, the other participating national financial system entities are expected to gradually join in this measure.