About this work
Bloomberg Línea reports that Bolivia is moving from its fixed exchange rate to a flexible scheme, with the central bank setting a daily rate from financial institution transactions. Jonathan Fortun of the IIF said the new framework is neither a clean float nor a full break with the old system, but a managed flexible regime, or broadly a dirty float. He explained that it is not fully market determined because the central bank defines the methodology, collects the data and publishes the rate, and because the regulation caps the selling rate.