Bolivian boliviano

History

Currencies in use before the current second boliviano include:

• The Spanish real from the 16th to 19th centuries, with 8 reales equal to 1 peso and 16 reales equal to 1 escudo.
• The Bolivian sol from 1827 to 1864, replacing the Spanish real at par. 16 soles were equal to 1 Bolivian escudo, and 8 soles were equal to 1 boliviano.
• The first boliviano from 1864 to 1963, worth eight soles and divided into 100 centécimos (later centavos). The name bolivar was used for an amount of ten bolivianos.
• The peso boliviano (code ), from 1963 to 1986, worth 1,000 first bolivianos.

The second boliviano was introduced in 1987 at a rate of 1 boliviano = 1,000,000 pesos bolivianos.

Second boliviano

Following many years of rampant inflation, the bolivian peso was replaced in 1987 by a new boliviano at a rate of one million to one (when 1 US dollar was worth 1.8/1.9 million pesos). At that time, 1 new boliviano was roughly equivalent to U.S. dollar.

Coins

In 1988, stainless-steel 2, 5, 10, 20 and 50 centavos and 1 boliviano (dated 1987) coins were introduced, followed by stainless-steel 2 bolivianos in 1991. Copper-plated steel 10 centavos were introduced in 1997 and bi-metallic 5 bolivianos in 2001. The 2 and 5 centavo coins are no longer in circulation. The 2 boliviano coin has been minted in two sizes, both of which remain legal tender. The smaller 2 boliviano coin is almost the same as the 1 boliviano coin, leading to potential confusion, although the 2 boliviano coins are undecagonal whilst the 1 boliviano coins are round. All the coins in Bolivia have the value with the inscription "La union es la Fuerza" ("Union is strength" in Spanish) on the obverse. Older coins feature and the coat of arms of Bolivia with the inscription "Republica de Bolivia" (Republic of Bolivia) on the reverse, while newer ones feature the coat of arms with the inscription "Estado Plurinacional de Bolivia" (Plurinational state of Bolivia).

Banknotes

In 1987, last peso boliviano banknotes and cheques de gerência were overprinted with denominations in centavos and bolivianos to produce provisional issues of 1, 5, 10 and 50 centavos, and 1, 5 and 10 bolivianos. Regular issues followed the same year in denominations of 2, 5, 10, 20, 50, 100 and 200 bolivianos. The 2 boliviano note was replaced by a coin in 1991, with the same happening to the 5 boliviano in 2001, although the Bolivian central bank still listed the 5 boliviano note as "in circulation" until 2013, when the 2 and 5 Bolivianos bills were officially out of circulation.

The Bolivianos bills depict prominent historical figures:

• The 10 Bolivianos bill has in the obverse to the painter Cecilio Guzman and reverse an image of city of Cochabamba.
• The 20 Boliviano bill has in the obverse to the lawyer Pantaleon Dalence and in the reverse, an image of The Golden Colonial House of Tarija. The 50 Boliviano bill has in the obverse to the painter Melchor Perez and when reversed the Tower of Church of the Society of Jesus in the city of Potosi can be seen.
• The 100 Boliviano bill has in the obverse of the great historian Gabriel Rene Moreno and the reverse one image of the Mayor Real and Papal University of Saint Francisco Xavier of Chuquisaca in the capital, the city of Sucre.
• The 200 Boliviano bill has to the obverse to the writer and former president of Bolivia, Franz Tamayo and in the reverse an image of ruins of the Pre-Inca empire of Tihuanaco in the shores of Lake Titicaca in the state or department of La Paz.

In 2018, the Central Bank of Bolivia (Banco Central de Bolivia) unveiled a new family of banknotes, and will be issued by order of denomination. The notes are the first to bear the formal name of Bolivia "Estado Plurinacional de Bolivia" (Plurinational State of Bolivia), to reflect the multiculturalism of the country and all of its citizens.

Exchange rates

In a fixed exchange rate regime system, the Central Bank of Bolivia undertakes to buy and sell foreign currency at the price it previously set of Bs 6.86 for the purchase and Bs 6.96 for the sale for 1 $US, respectively, from November 2011 to the present, which is more than eleven continuous years. The consequences of this system are crucial, although in practice they are not understood in their real dimension of its effects in the short and long term on the country's economy. Since 2023 in Bolivia there has been a shortage of United States dollars, so the "parallel" dollar began to settle in streets and some exchange houses, reaching an exchange rate of Bs 15 for sale for 1 $US although the Central Bank of Bolivia enabled the option of carry out the sale of dollars in their offices at the official price.

Since the emergence of a parallel exchange market, several websites have begun tracking informal U.S. dollar prices in Bolivia using peer-to-peer (P2P) exchange data from platforms such as Binance. These sources provide reference exchange rates based on market transactions rather than official figures.

Manufacture and production

As of 2013 boliviano coins and banknotes are still being produced abroad, in countries such as the United Kingdom, France, and Chile, even though Bolivia has been politically independent since 1825.

Though Bolivia was one of the main mints of the colonial era (casa de la moneda, Potosí) the coining and printing of currency stopped due to lack of political interest and on the idea that foreign made coins and banknotes could be acquired at a lower price than the Bolivian-made coins and banknotes.

US dollar-related currency (MVDOL)

MVDOL (ISO 4217 code ) is a unit of currency (account). It has a value, inflation-adjusted between the Bolivian boliviano and the US dollar. It is used in financial instruments due to its stable value.

The name :wikt:MVDOL is derived from moneda nacional con mantenimiento de valor al dólar estadounidense ([Bolivian] national currency with value maintained to the US dollar).

References

References

1. Banco Central de Bolivia. "''[http://www.bcb.gob.bo/especiales/monedasbilletes/index.html Galeria de monedas y billetes] {{Webarchive. link. (2011-03-05 ''." Accessed 26 February 2011.)
2. Banco Central de Bolivia. [http://www.bcb.gob.bo Official website] Accessed 26 February 2011.
3. "Introduction of Bolivia's new banknote family". La Razon Bolivia.
4. "Award to new family banknote of Bolivia".
5. "Standard circulation coins – Numista".
6. "Banco Central de Bolivia :: Galerķa de Billetes y Monedas".
7. (15 February 2024). "Crece preocupación por escasez de dólares en Bolivia que afecta al sector productivo, según gremios". SanDiegoUnionTribune.
8. (17 February 2024). "Ante la escasez, el dólar 'paralelo' se asienta en las calles y las casas de cambio". EjuTv.
9. (6 March 2023). "Banco Central habilita la venta de dólares para el público en general al tipo de cambio oficial". Erbol.
10. "Parallel U.S. dollar exchange rate in Bolivia".