LA PAZ (Reuters) – Bolivia’s Senate gave final approval early Friday to the so-called “Gold Law” aimed at boosting the country’s foreign exchange reserves.
The legislation, which was supported by the ruling party and allows the central bank to monetize its gold reserves, will now be sent to President Luis Arce for signature within 10 days.
Concerns about a dollar shortage in recent months have fueled broader concerns about the economic crisis in Bolivia, where foreign currency reserves have been running low for years and the local currency is pegged to the dollar.
In a statement after the vote, Bolivia’s central bank said the law was the result of “a consensus with gold producers, members of mining cooperatives, social and trade union organizations from different sectors, and national legislators.”
The new law will allow the central bank to buy raw gold from mining cooperatives in the country and convert it into gold currency or bars for trading on international markets.
“We approved the law by majority … It is to ensure a stable economy in the multinational country,” said Hilarion Mamani, a senator for the ruling left-wing Maas party.
Bolivia’s net foreign reserves have fallen from a peak of over $15 billion in 2014 to less than $4 billion now.
Opposition Senator Andrea Barrientos said after the debate that “Bolivia is in deep crisis and this law is just a palliative.”