Fitch Warns Bolivia Needs Fiscal Adjustment to Rebuild Reserves
Fitch Ratings warned on 24 August 2026 that Bolivia needs a significant fiscal adjustment to rebuild its international reserves. The agency said the new flexible exchange-rate regime alone will not ensure sustainable reserve accumulation. The post Fitch Warns Bolivia Needs Fiscal Adjustment to Rebuild Reserves appeared first on The Rio Times .
On 24 August 2026, Fitch Ratings cautioned that Bolivia requires significant fiscal adjustments to rebuild its international reserves. The agency emphasized that a flexible exchange-rate system alone is insufficient for sustainable reserve recovery. Fitch stated that the new exchange-rate regime, while potentially beneficial, does not guarantee durable rebuilding of foreign currency holdings without accompanying fiscal and macroeconomic measures.
The core issue lies in reducing fiscal and macroeconomic imbalances, which are crucial for reserve recovery. Fitch questioned whether the recent exchange-rate move is part of a broader, coherent adjustment program, highlighting the need for concrete steps beyond the exchange-rate flexibility. The agency expressed doubts about Bolivia's capacity to implement such adjustments, underscoring that rebuilding reserves requires not only securing new external financing but also changing conditions that keep dollar demand high.
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