Central Banks

Bolivia’s Central Bank Pledges to Defend Currency Peg as Residents Scramble for Cash

  • Nation’s bonds extend their selloff in New York trading
  • Central bank’s dwindling cash reserves have spooked investors
Residents wait in line outside of the Bolivian Central Bank in La Paz, Bolivia, on March 8.Photographer: Sara Aliaga Ticona/Bloomberg
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Bolivia’s central bank moved to reassure anxious savers who have been lining up for days outside the bank’s headquarters in a rush for dollars that has spooked global investors, sinking the nation’s bonds.

“Maintaining a stable currency gives security to the population which allows us to live in a stable economy, in a process of economic recovery,” central bank President Edwin Rojas told reporters in La Paz on Thursday.