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Fitch Says Bolivia Reserves Are No Longer Enough for FX Peg

  • Government reluctant to rein in deficit ahead of May election
  • Nation’s international reserves have fallen by half since 2014
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Photographer: Marcelo Perez del Carpio/Bloomberg
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Bolivia has depleted its “war chest” of international reserves to the point that it no longer has enough dollars to defend the nation’s fixed exchange rate, according to Fitch Ratings.

Fitch in November downgraded the Andean country to B+, four notches below investment grade, citing the central bank’s dwindling reserve pile and political turmoil following the ouster of President Evo Morales.