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Regulation Macro

Bolivia Scraps Central Bank Gold Buying, Eases Export Controls

Bolivia is dismantling its state-controlled gold trading system, ending central bank purchases of the metal and loosening restrictions on private exports. Under new rules backed by President Paz, exporters will no longer need a central bank certificate to ship gold abroad, but at least 80% of export proceeds must flow into Bolivia’s banking system. The reform ends a three-year system overseen by the central bank.

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AI take

The shift matters less for gold flows than for Bolivia's balance-of-payments plumbing: by requiring most export proceeds to return through domestic banks, the government trades direct control over the metal for a claim on hard-currency inflows. That could ease reserve pressure while giving private miners and exporters a freer hand, at the cost of the central bank's role as a buyer of last resort. Whether the 80% repatriation rule is actually enforced — and whether formal channels attract gold that previously moved informally — is the open question.

Generated by AI for reference only.

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