Bolivia is radically reforming its gold trade regime, eliminating state trading controls and suspending central bank purchases to boost foreign exchange inflows and reduce state intervention in the economy. Under the new rules, exporters will no longer require central bank certificates to export gold but must deposit at least 80% of export earnings in the local banking system. The Central Bank of Bolivia, under the direction of David Espinoza, has formally announced that it will suspend its gold purchases, marking a significant shift from the previous administration. Espinoza explained to Bloomberg that the reforms will help the institution strengthen its international reserves while withdrawing as a buyer. The government spokesperson, José Luis Gálvez, emphasized that the goal is to increase foreign exchange flows into the domestic financial system, strengthen dollar availability, and improve the supervision of gold exports. The change is urgent, as under the previous system, gold exports plummeted drastically. The new system will allow the Ministry of Finance to receive gold export data from the regulator SENARECOM and oversee corresponding bank deposits, with the ability to adjust the minimum deposit percentage in the future. The economist Fernando Romero warns that the new system will depend on the willingness of exporters to comply and that banks should not create obstacles to accessing the full value of deposits. However, he added that the traceability and supervision of exports should improve.
The Central Bank has already completed the obligations of a previous commitment. Espinoza confirmed that the institution delivered the 6.6 tons of gold sold forward under the previous government, completing the obligation on October 9 with the final delivery of 1.2 tons. That gold was valued at $872.5 million, although the bank received only $737.6 million from the forward sales. Espinoza projects that the new system will increase dollar flows from the foreign exchange market. He also highlighted that the central bank bought $400 million from private lenders in July and August, adding that future dollar purchases will be facilitated by changes in gold regulation, leading to a 'genuine increase in reserves'. The reform came into effect on Tuesday through a presidential decree signed by Paz and his cabinet, eliminating the requirement for central bank certificates and dismantling the system that effectively controlled gold trade in Bolivia for three years.