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Bolivia Moves Closer To Gold Confiscation With Latest Law Blocking Bullion Sales/Exports
• Zero HedgeWhat is Bolivia worried about?
Perhaps the 25,000% hyperinflationary evaporation of the peso in the '80s has left a deep scarring on the South American countries lawmakers.
In 2018, The Bolivian Central Bank (BCB) took the administrative measure to suspend the sale of dollars in order to maintain its peg to the dollar.
And in doing so, the BCB has been forced to puke away its reserves (now at their lowest level) since 2007.
Source: Bloomberg
All of which is why, as Bloomberg reports, Bolivian lawmakers are debating a bill that would require all gold produced in the country to be offered to the central bank as the nation builds its reserves.
In addition, the law is an effort to crackdown on the illegal bullion trade.