Bolivia introduces new regulations on gold exports: exchanging for US dollars, strict supervision, ending three-year Central Bank system

(1) Bolivia is implementing a reform whose main objective is to promote private gold exports while allowing more US dollars to flow into the domestic banking system, and this reform has received presidential support. (2) The new regulations will replace the system previously overseen by the Central Bank, which had been in operation for three years. (3) According to the new rules, gold exporters must prove to the mineral and metal trade regulatory agency SENARECOM that at least 80% of their export revenue has been deposited in financial institutions within Bolivia. (4) At the same time, exporters will no longer need to obtain proof documents issued by the Central Bank for exporting gold, simplifying the process. (5) Government spokesperson José Luis Gálvez said on Wednesday that the aim is to allow more foreign currency to flow into the domestic financial system, increase the availability of US dollars, and strengthen regulation of gold exports. He emphasized that any gold leaving Bolivia must bring US dollars back to Bolivia. Bolivia has long faced shortages of US dollars as well as significant gold smuggling losses; many miners, dissatisfied with the conditions offered by the Central Bank, choose to take gold abroad to exchange for US dollars. This is one reason why the government hopes to tie gold exports and US dollar inflows together with the new regulations.