The Central Bank of Bolivia (BCB) has set the rules under which it will buy and sell US dollars from and to financial institutions. Through Board Resolution No. 117/2026, of 30 July 2026, the BCB’s Board approved the Regulation on the Purchase and Sale of US Dollars, attached as an Annex to the Resolution.
The measure forms part of the transition to a flexible exchange-rate regime established by Ministerial Resolution No. 245, of 26 June 2026, issued by the Ministry of Economy and Public Finance, which entrusted that transition to the BCB under the powers conferred by Law No. 1670.
Purpose and scope
The Regulation governs the procedures for the purchase and sale of US dollars (USD) by the BCB with Financial Intermediation Entities (EIF). Its purpose, under Article 2, is twofold:
For the financial system, procedural predictability is the gain; operational demand is the cost.
- to mitigate undesired fluctuations in the foreign-exchange market; and/or
- to accumulate International Reserves.
The same article sets a significant limit: these operations are to be carried out without inducing a specific level of the Official Exchange Rate (TCO). The BCB thus reserves a market-smoothing role rather than one of setting a target price.
Participants and general conditions
Participation is open to EIF that hold a current and reserve-requirement account, or a reserve-requirement account, at the BCB. They may participate on their own account or on behalf of third parties. The exchange rate must be expressed in bolivianos per USD, to two decimal places.
The Regulation provides for two operating modes: direct operations and auctions.
Direct operations
For the BCB’s purchase of USD from the EIF, the International Operations Management (GOI) will notify the EIF, by 8:30 a.m. on the day of the operation, of three conditions: the amount of USD to be acquired, the exchange rate for the operation, and the window for receiving bids.
Once the bidding window closes, successful EIF must transfer the USD by 3:00 p.m., either by crediting the BCB’s account at its correspondent bank abroad or by cash deposit in the BCB’s vaults. Once receipt is verified, the BCB will credit the corresponding amount in bolivianos at the bid exchange rate.
For sales of USD, the GOI will notify by the same hour the amount to be sold — and, where applicable, the maximum amount per EIF —, the exchange rate and the bidding window. The BCB will debit the equivalent amount in bolivianos and credit the USD to the EIF’s account. Where total bids exceed the amount on offer, allocation will be made pro rata, according to each bid’s share of the total.
Allocated USD may be transferred to the correspondent bank abroad or withdrawn in cash from the BCB’s vaults. These operations are exempt from the fees set out in the BCB’s Fee Schedule.
Foreign-exchange auctions
For the auction mode, the GOI will publicly announce the date and time of the auction, the bidding window and other features. The auction has two stages:
- orientation stage: the EIF submit demand or supply requests at the base exchange rate set by the BCB;
- magnitude stage: the EIF submit supply requests where there was excess demand, or demand requests where there was excess supply, at the successive exchange rates established during the auction.
The base exchange rate is the initial quotation used in the orientation stage. The allocation exchange rate is the uniform price resulting from the auction, at which the purchase and/or sale is carried out. Crediting and debiting of accounts follows the same rules as in the direct mode.
Insufficient funds and disclosure
If an EIF does not have the necessary funds in local currency or in USD, as applicable, by 3:00 p.m. on the allocation day, the operation will be rendered void and the EIF will be suspended from participating in the BCB’s USD purchase and sale operations for ninety (90) calendar days.
The results of each operation will be published on the same day as the allocation through the BCB’s institutional website. Operational matters not provided for in the Regulation fall to the President of the BCB, without prejudice to the Board’s powers to issue supplementary provisions.
Entry into force
The Resolution enters into force upon publication. The Presidency and the General Management of the BCB are charged with its enforcement.
Practical implications for institutions
For banks and financial institutions, the Regulation turns foreign-exchange dealings with the BCB into a rule-bound procedure, with strict deadlines and consequences for non-compliance.
Treasury discipline
The 3:00 p.m. deadline and the 90-calendar-day suspension make it essential to secure funds before submitting bids.
Accuracy in bidding
Pro-rata allocation in cases of excess demand means an award may be partial; bid sizing should reflect this.
Currency position management
Two operating modes and a uniform allocation price call for active monitoring of the USD position.
Operating costs
The fee exemption on withdrawal or transfer of allocated USD reduces the cost of the operation.
Transparency
Same-day publication of results allows institutions and the market to read the direction of the BCB’s intervention.
Strategic perspective
Board Resolution No. 117/2026 completes the operational architecture of the flexible exchange-rate regime: it defines who participates, under which modes, at what price and with what consequences. By expressly stating that the operations do not seek to induce a specific level of the Official Exchange Rate, the BCB confines its intervention to smoothing fluctuations and strengthening International Reserves.
For the financial system, procedural predictability is the gain; operational demand is the cost. Institutions that adjust their treasury processes and forecasting capacity now will be better placed to participate regularly without incurring the suspension provided for in the Regulation.
