Bolivia opens gold exports to draw more dollars into its banking system

Bolivia is ending central-bank gold purchases and removing a key export approval requirement as the government seeks to bring more foreign currency into the domestic banking system. Under the new rules, exporters can ship gold without central-bank certificates, but must deposit at least 80% of export proceeds in Bolivia’s banks.

Key takeaways

The changes shift gold trading away from the central bank while keeping a minimum share of export earnings within the formal financial system.

  • Exporters no longer need central-bank certificates to ship gold abroad.
  • At least 80% of proceeds must be deposited in Bolivia’s banking system.
  • The central bank says it will stop buying gold, ending a policy introduced in 2023.
  • Officials hope the new arrangement will increase dollar availability and improve export oversight.

A new framework for gold exports

A decree signed by President Rodrigo Paz and his cabinet scrapped the certificate requirement, dismantling a system established under former president Luis Arce. The finance ministry will receive gold-export and deposit data from regulator SENARECOM, and will be able to revise the minimum share of proceeds that exporters must place in local banks.

The government describes the overhaul as part of a broader effort to increase foreign-currency inflows and reduce state control of the economy. Central Bank President David Espinoza said the bank would suspend gold purchases, but expects the changes to help it build reserves through improved dollar flows.

Why the previous system was under pressure

Under the former arrangement, the central bank bought locally produced gold to add to its reserves, then authorized the remaining supply for export. It paid exporters in bolivianos at an exchange rate that was often criticized as unattractive, while later selling gold for dollars amid shortages of hard currency. Some proceeds helped fund subsidized fuel.

Critics said those terms encouraged miners and traders to move gold through informal channels to obtain dollars. Official data show exports declined from more than $3 billion in 2022 to $1.1 billion last year, though the new rules alone may not reverse that trend.

Compliance will determine the outcome

Economist Fernando Romero cautioned that exporters’ response will depend on whether depositing proceeds is straightforward and whether banks allow them access to the value of those deposits. If compliance is costly, slow or uncertain, some operators could reduce activity or use informal routes. The reform is not designed to curb informal mining, which is a significant source of locally produced gold, and could also create risks of increased smuggling even as export traceability improves.

The central bank’s decision to stop buying follows completion of a 6.6-tonne forward-sale obligation inherited from the previous administration. The final 1.2 tonnes were delivered on 9 October. Espinoza said the bank valued the gold at $872.5 million and received $737.6 million from the forward sales.

What traders should watch

For markets, the practical test is whether more export earnings reach banks and translate into greater dollar availability—not simply whether gold exports rise. Traders should also track the deposit threshold, bank conversion conditions and any evidence that formal exports are recovering. These policy developments are separate from evaluation limits: traders using MatchTrader on Classic or Rapid evaluations still need to manage the 12% max loss, 5% daily loss and 40% best-day rule. The platform and rules govern trading activity; they do not remove the uncertainty around currency-policy changes.