Bolivia Ends the Fixed Exchange Rate Era: Legal and Business Implications of Ministerial Resolution No. 245/2026
Ministerial Resolution No. 245/2026 establishes a flexible exchange rate regime to be implemented by the Central Bank of Bolivia based on the daily supply and demand for foreign currency in the financial system.
Bolivia has entered one of the most consequential shifts in its recent economic policy. Through Ministerial Resolution No. 245/2026, dated 26 June 2026, the Ministry of Economy and Public Finance established a flexible exchange rate regime, with the stated objective of strengthening macroeconomic stability, preserving external competitiveness and contributing to balance of payments equilibrium.
The measure marks the end of the fixed exchange rate framework that had been in place for approximately fifteen years, with the official exchange rate held close to Bs 6.96 per U.S. dollar. The Central Bank of Bolivia published an official exchange rate of Bs 9.73 per U.S. dollar for Monday, 29 June 2026, representing a significant adjustment from the previous regime.
This is more than a technical change. It acknowledges a reality that the market had already internalised: the gap between the official exchange rate and the rate effectively available in practice had ceased to be a temporary anomaly and had become a central economic constraint. The Resolution does not create that tension; it formalises it and seeks to bring it back into the financial system.
For companies, banks, investors, importers, exporters and borrowers in foreign currency, the change will have immediate implications for contracts, pricing, margins, accounting, debt, foreign trade and treasury planning.
- A change of regime, not just a change of rate
Ministerial Resolution No. 245/2026 expressly establishes a flexible exchange rate regime. Its importance lies not only in the new initial dollar rate, but in the replacement of an administratively fixed price with a daily reference linked to transactions in the financial system.
The Ministry identifies several reasons for the measure: the fall in hydrocarbon export revenues, the need to incentivise other sectors capable of generating foreign currency, and the lower availability of liquid net international reserves. The Resolution also recognises that, since early 2023, the limited availability of foreign currency contributed to the emergence of a parallel exchange rate, variable and higher than the official BCB rate.
In economic terms, the Resolution accepts that the official exchange rate could no longer operate as an equilibrium price. In legal terms, it creates a new institutional reference for public, financial, accounting and contractual purposes.
That is the central point: the dollar is no longer a regulatory constant. It becomes a legal and economic variable that must be actively managed.
- The role of the Central Bank of Bolivia
The Resolution provides that the transition to the new regime will be implemented by the Central Bank of Bolivia (BCB), within the scope of its powers under Law No. 1670. The methodology will be based on the daily supply and demand for foreign currency in the financial system.
According to public reports, the BCB published an official exchange rate of Bs 9.73 per U.S. dollar for Monday, 29 June 2026. It was also reported that the system will take into account transactions carried out by financial institutions with their clients, with the aim of ensuring that the official rate more closely reflects actual conditions in the financial market.
This design has an important practical consequence: the quality of the new exchange rate will depend on the depth, transparency and representativeness of the transactions reported in the financial system. A flexible regime works best when there is liquidity, reliable information and predictable rules. Without those elements, risk does not disappear; it changes form.
- The new function of the official exchange rate
Under the previous regime, the official exchange rate operated as an anchor. Under the new regime, it will operate as a signal.
The distinction matters. An anchor seeks to stabilise expectations through a fixed quote. A signal conveys information about the relative scarcity of foreign currency, demand behaviour and market conditions. That signal may improve resource allocation, but it also introduces volatility and requires companies to make decisions with greater financial discipline.
The new official exchange rate may affect:
- public-sector operations;
- BCB operations;
- accounting records;
- valuation of assets and liabilities;
- contracts referencing the official exchange rate;
- banking transactions in foreign currency;
- foreign trade structures;
- international payments;
- dollar-denominated financial obligations.
For companies, the key question will no longer be only “what is the exchange rate?” but which exchange rate applies, on what date, for which obligation, and under which contractual or regulatory source?
- Contractual implications: FX risk must be allocated
The new regime will require a review of existing and future contracts. For years, many currency clauses in Bolivia were drafted on the assumption that the official exchange rate was stable. That assumption can no longer be taken for granted.
Companies should review, in particular:
- payment currency clauses;
- references to the “official exchange rate”;
- conversion dates;
- applicable quotation sources;
- exchange rate adjustment mechanisms;
- allocation of FX risk between the parties;
- hardship or economic imbalance clauses;
- foreign currency payment obligations;
- international supply agreements;
- distribution and import agreements;
- dollar-denominated financing agreements;
- leases, prices and fees indexed to foreign currency;
- intragroup agreements and transfer pricing arrangements.
A clause that once looked standard may now be insufficient. A generic reference to the “official exchange rate”, for example, may not adequately address a payment made on a different date from the invoice, a delay in access to foreign currency, or asymmetric exposure between the parties.
The new legal task will be to turn foreign exchange risk into a clear contractual allocation.
- Importers: real costs, margins and renegotiation
For importers, the new regime may change the economics of their operations. If costs are denominated in U.S. dollars and revenues are generated in bolivianos, exchange rate movements will directly affect margins, inventories, final prices and working capital needs.
The most exposed sectors will be those highly dependent on:
- imported inputs;
- machinery and spare parts;
- pharmaceuticals;
- technology;
- imported food products;
- fuel and international logistics;
- services contracted abroad;
- commercial debt in U.S. dollars.
In these cases, companies will need to review not only prices, but also payment terms, delivery conditions, invoicing currency, price adjustment clauses and inventory policies. Negotiation with suppliers and customers will become a tool of FX risk management.
- Exporters: an opportunity, but not a guarantee
For exporters, a more flexible exchange rate may improve external competitiveness and increase the local-currency value of dollar revenues. But the benefit will not be automatic or uniform.
It will depend on several factors:
- local versus imported cost structure;
- rules on repatriation or settlement of export proceeds;
- collection timing;
- working capital financing;
- effective access to the financial system;
- logistics costs;
- regulatory stability;
- capacity to increase production.
The Resolution seeks to incentivise sectors capable of generating foreign currency in a context of lower hydrocarbon revenues. However, exchange rate competitiveness translates into investment only when accompanied by regulatory predictability, infrastructure, legal certainty and clear rules on access to foreign currency.
- Debt, accounting and financial statements
The regime change will also affect the financial reading of companies.
Businesses with dollar debt and boliviano revenues may face greater pressure on leverage ratios, debt-service coverage and financial covenants. Exchange differences may affect accounting results, equity, solvency indicators and dividend distributions.
Companies will need to assess:
- valuation of foreign currency liabilities;
- accounting recognition of exchange differences;
- tax treatment of FX gains or losses;
- covenant compliance;
- renegotiation of financing arrangements;
- net currency exposure;
- effects on budgets and projections;
- hedging policies, where instruments are available.
In a fixed exchange rate environment, some companies treated currency exposure as a secondary issue. In a flexible regime, it becomes part of basic financial governance.
- The financial system: more market, more responsibility
The new regime places the financial system at the centre of exchange rate formation. The Resolution is based on the premise that transactions carried out by financial institutions provide an adequate reference for determining the official exchange rate under a flexible regime.
This raises the importance of:
- timely and consistent reporting;
- internal controls for FX operations;
- treasury policies;
- clear communication with clients;
- transparency in spreads and costs;
- foreign currency liquidity management;
- compliance with BCB rules and financial supervision.
For banks, the opportunity to operate in a more realistic market comes with greater scrutiny. The credibility of the new regime will depend in large part on whether the financial system is perceived as a transparent channel rather than as an additional source of uncertainty.
- Inflation, prices and expectations
The Resolution seeks to contribute to macroeconomic stability and the correction of imbalances. However, an exchange rate adjustment may pass through to prices, especially in economies with significant import dependency or sensitive inflation expectations.
Reuters reported that the policy shift occurred in a context of severe dollar shortages, declining reserves and Bolivia’s negotiations with the International Monetary Fund for a financing programme. It also noted that the new rate represented an effective devaluation from the previous regime and that rebuilding reserves will be critical to the measure’s success.
The macroeconomic challenge will be to prevent the exchange rate correction from turning into an indexation spiral. For companies, the challenge will be to distinguish between necessary price adjustments and commercial decisions that may erode demand or generate contractual disputes.
- Risks and points to monitor
The flexible regime may reduce distortions and narrow the gap with the parallel market. But it does not, by itself, guarantee full availability of foreign currency or immediate stability.
Key points to monitor include:
- initial exchange rate volatility;
- the BCB’s effective calculation methodology;
- depth of the financial foreign exchange market;
- real availability of U.S. dollars for private transactions;
- gap between the official rate, reference rates and the parallel market;
- inflationary impact;
- response by importers and exporters;
- accounting and tax treatment of exchange differences;
- effects on long-term contracts;
- potential complementary measures by the BCB, ASFI or the Ministry of Economy.
In exchange rate policy, credibility cannot be decreed. It is built through stable rules, sufficient liquidity and consistent signals.
- Practical recommendations for companies
Companies should immediately review their FX exposure and critical contracts.
In particular, we recommend:
- mapping revenues, costs, debt and contracts exposed to the U.S. dollar;
- reviewing exchange rate, conversion-date and quotation-source clauses;
- identifying contracts with mismatches between revenue currency and cost currency;
- updating budgets, financial models and cash-flow projections;
- reviewing pricing policies and adjustment mechanisms;
- preparing FX sensitivity scenarios;
- reviewing financial covenants and debt obligations;
- analysing accounting and tax treatment of exchange differences;
- coordinating with banks on availability, costs and timing of access to foreign currency;
- updating treasury, international payments and liquidity policies;
- documenting renegotiations or adjustments resulting from the regime change.
The recommendation is not to overreact, but to professionalise FX risk management. Under the new framework, passivity may be more expensive than volatility.
Conclusion
Ministerial Resolution No. 245/2026 represents a structural change in Bolivia’s exchange rate policy. The move from a fixed exchange rate to a flexible regime recognises an economic reality accumulated over recent years: foreign currency scarcity, declining liquid reserves and the existence of a parallel market had reduced the effectiveness of the official rate as an economic reference.
The new regime may provide greater transparency, improve external competitiveness and reduce distortions. But it also requires more sophisticated FX risk management from companies, banks and investors.
For the private sector, the exchange rate is no longer an administrative fact. It is now a strategic variable. The difference between adapting and not adapting will be seen in contracts, margins, debt, prices and investment capacity.
The measure opens a new chapter. Its success will depend less on the initial published rate and more on the consistency of implementation, the depth of the foreign exchange market and the ability to rebuild confidence. Companies that incorporate FX risk into their legal and financial management will be better positioned to navigate the transition.
