Bolivia on the brink of economic abyss: currency shortage puts the country in checkmate

Bolivia is on the brink of an unprecedented economic crisis, facing an alarming shortage of foreign currency that has jeopardized the country's financial stability. International reserves have decreased drastically, reaching approximately US$1.7 billion, which represents less than 4% of Bolivia's Gross Domestic Product (GDP). This situation has created a scenario of uncertainty and discontent among the population, who are affected by the impact of the economic policies implemented by the government of Luis Arce. One of the main problems Bolivia is currently facing is the lack of dollars to finance imports, especially of essential products such as gasoline and diesel. These fuels, which were previously subsidized by the government, must now be purchased at international prices, significantly raising transportation costs and directly affecting the price of food and citizens' wallets. The strategy of maintaining a fixed exchange rate, clearly overvalued, has contributed to the current crisis by discouraging the entry of dollars into the country. While in the informal market the dollar is quoted at a much higher value than the official exchange rate, Bolivian authorities continue to insist on a price that does not reflect the market reality, creating a gap that discourages the sale of foreign currency to the government and encourages its purchase, thus depleting the already deficient international reserves. It is concerning that, instead of adopting measures to correct this distortion and boost market confidence, the Arce government has opted for coercive policies that punish those who do not adhere to its guidelines. The imposition of capital controls, the sale of national assets, and the use of pension funds to obtain foreign currency are palliative measures that do not address the root of the problem and, on the contrary, create an atmosphere of insecurity and distrust in the economic sector. The lack of transparency and predictability in government policies has deterred foreign investors, further complicating the possibility of attracting new capital that could help alleviate the shortage of dollars in the country. The situation worsens with the imminent devaluation of the currency, the postponement of which will only prolong and deepen the economic crisis currently facing Bolivia. Amid this adverse context, President Arce has embarked on a trip to Russia in search of possible solutions, such as strengthening ties with powers like Russia and China, promoting Bolivia's membership in the BRICS, and obtaining credits that could alleviate the crisis. However, it is essential to recognize that these measures only represent a temporary patch and do not address the structural problems that have led the country to this situation. To achieve a sustainable way out of this crisis, Bolivia must adopt realistic economic policies that foster market confidence. It is necessary to allow the exchange rate to float according to supply and demand, reduce the fiscal deficit, and create a conducive environment for foreign investment. Only through structural reforms and responsible measures can the foundations be laid for a solid and lasting economic recovery that ensures the well-being of all Bolivians.