IMPLEMENTATION OF THE FLEXIBLE EXCHANGE RATE

MINISTERIAL RESOLUTION 245 OF THE MINISTRY OF ECONOMY AND FINANCE AND BOARD RESOLUTION 88 OF THE CENTRAL BANK OF BOLIVIA, BOTH DATED JUNE 26, 2026 – IMPLEMENTATION OF THE FLEXIBLE EXCHANGE RATE

An official exchange rate under the “flexible” modality is implemented, replacing the fixed rate, with the following main aspects:

• The Official Exchange Rate (OER) will be determined in relation to the U.S. Dollar and will be set daily by the Central Bank of Bolivia as the weighted average of foreign exchange purchase transactions conducted by Multiple Banks, SME Banks, and the Public Bank with their clients.
• The OER will serve as the reference for foreign exchange transactions carried out by economic agents and the general public.
• The Central Bank of Bolivia will publish on its website at 8:00 p.m. each business day the OER that will be in force the following day.
• The Reference Sale Value of U.S. Dollars will be the OER plus 0.10 bolivianos, and Financial Institutions may not sell USD above this value.

This measure aims to strengthen macroeconomic stability, preserve external competitiveness, and contribute to the balance of payments. However, although the implementation of the Reference Exchange Rate in December 2026 already regulated the foreign exchange market at a “market” rate used for economic transactions, by modifying the official exchange rate from Bs 6.96/USD to a flexible one, the effects on imports, exports, accounting records, and tax matters must be taken into consideration.

Contacts and Further Information

For more information on the implications of the Flexible Exchange Rate, you may contact our legal team: abogados@baqsn.bo