Bolivia: Selected Issues
IMF Staff Country Reports, January 29, 2010
Source details
- Canonical URL
- Bolivia: Selected Issues
Other formats
Bibliographic details
- Published: January 29, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451805871.002
Key findings and estimates
- Bolivia’s foreign reserves are adequate.
- Estimated optimal level of reserves: between 29 percent of GDP and 37 percent of GDP.
- The paper derives estimates of optimal reserves focusing on current account shocks as the key balance of payments risk.
Drivers of reserve accumulation
- Reserve accumulation stemmed primarily from a persistent current account surplus.
- The macroeconomic context included a crawling peg exchange rate regime.
- Large current account surpluses followed from major terms of trade improvement after the sharp increase in Bolivia’s key export commodity prices during the period 2004–08.
Analytical focus
- Primary balance of payments risk considered: current account shocks.
- The analysis links external asset accumulation to commodity price developments and exchange rate regime.
Content in this bundle
- Bolivia: Selected Issues; IMF Country Report 10/29; December 23, 2009