History
On December 15, 1959, Bolivia had introduced a comprehensive economic stabilization program that abolished most currency restrictions on the boliviano, which had suffered badly from inflation. The program adopted a fluctuating exchange rate that was finally stabilized in 1962 at 11,875 bolivianos to the US dollar.
The currency reform of January 1, 1963 adopted the peso boliviano, equal to 1,000 bolivianos, with an initial central exchange rate of 11·875 per US$1. But inflation soon returned and the peso boliviano was devalued 39.4% on October 27, 1972, with a new official rate of 20·00 per US$1. This rate was maintained until November 30, 1979, when the peso boliviano was put on a controlled float, initially at 25·00 per dollar. Inflation accelerated. The official rate was devalued February 5, 1982 to 44 per US$1. The average exchange rate was 64·12 per in 1982, 229·78 per in 1983, and 2,314 per in 1984. By September 1985 the US dollar was worth a million pesos bolivianos on the black market. President Paz-Estenssoro announced a free exchange rate for the peso, which was floated on August 29, 1985, resulting in an effective devaluation of 95%. All exchange controls were lifted and the exchange rate was set twice weekly according to supply and demand. Its value continued to fall and by January 1986 the government was setting a new exchange rate daily in an attempt to boost confidence in the economy. After reaching a low of about 2·2 million per US$1, the peso improved and stabilized around 1·8-1·9 million per dollar.
A new monetary unit, the boliviano, was created by Law No. 901 of November 28, 1986, and a currency reform was announced December 30, 1986, effective January 1, This new boliviano replaced the peso boliviano at 1 boliviano = 1,000,000 pesos bolivianos.
Read more about this topic: Bolivian Peso
Famous quotes containing the word history:
“So in accepting the leading of the sentiments, it is not what we believe concerning the immortality of the soul, or the like, but the universal impulse to believe, that is the material circumstance, and is the principal fact in this history of the globe.”
—Ralph Waldo Emerson (1803–1882)
“In all history no class has been enfranchised without some selfish motive underlying. If to-day we could prove to Republicans or Democrats that every woman would vote for their party, we should be enfranchised.”
—Carrie Chapman Catt (1859–1947)
“Yet poetry, though the last and finest result, is a natural fruit. As naturally as the oak bears an acorn, and the vine a gourd, man bears a poem, either spoken or done. It is the chief and most memorable success, for history is but a prose narrative of poetic deeds.”
—Henry David Thoreau (1817–1862)