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:
“To care for the quarrels of the past, to identify oneself passionately with a cause that became, politically speaking, a losing cause with the birth of the modern world, is to experience a kind of straining against reality, a rebellious nonconformity that, again, is rare in America, where children are instructed in the virtues of the system they live under, as though history had achieved a happy ending in American civics.”
—Mary McCarthy (1912–1989)
“It is remarkable how closely the history of the apple tree is connected with that of man.”
—Henry David Thoreau (1817–1862)
“Regarding History as the slaughter-bench at which the happiness of peoples, the wisdom of States, and the virtue of individuals have been victimized—the question involuntarily arises—to what principle, to what final aim these enormous sacrifices have been offered.”
—Georg Wilhelm Friedrich Hegel (1770–1831)