Bolivia overhauls gold-buying rules after past irregularities

Bolivia’s central financial institution has resumed purchases of domestically mined gold to shore up overseas reserves, rolling out a brand new US greenback–linked pricing system and stricter guidelines geared toward stopping a repeat of previous irregularities.

The transfer comes underneath President Rodrigo Paz, a centre-right chief who took workplace on November 8 after 20 years of socialist rule. Whereas retaining the state’s function in shopping for gold, Paz’s administration is tightening oversight by refining value calculations and scrapping transactions that contain money advances.

The Central Financial institution of Bolivia (BCB) stated purchases restarted in December with the acquisition of 234 kilograms of gold, price about $35.8 million at present costs. Funds to suppliers are actually calculated in native forex utilizing a US greenback reference value, changing earlier mechanisms that lacked clear market linkage.

Bolivia started shopping for regionally produced gold in Could 2023, when acute greenback shortages threatened subsidised gas imports and overseas debt funds. The programme helped the nation meet its obligations however was criticised for weak safeguards, notably round tracing the origin of gold and monitoring transactions.

These issues deepened because the programme grew to become mired in allegations of irregularities and corruption. Earlier this yr, a former supervisor of the state gold buying and selling firm was arrested as a part of an $18 million investigation, underscoring governance lapses underneath the sooner framework.

Central financial institution President David Espinoza stated that between January and October 2025, the BCB made “atypical” advance funds totalling $278 million to 2 firms for two.8 tonnes of gold—a observe the brand new guidelines now prohibit.

Espinoza additionally stated the financial institution stays obligated to ship 6.6 tonnes of gold by October this yr, stemming from advance gold gross sales carried out in earlier years.

Official information present that between Could 2023 and December 2025, the central financial institution bought almost 36 tonnes of gold and monetised about 57 tonnes, producing roughly $4.7 billion. Espinoza stated most of these proceeds had been used to safe subsidised gas provides, a coverage the brand new authorities plans to unwind as gas subsidies are lifted.

Bolivia’s overseas reserves stood at $3.7 billion as of December 2025, together with $3.1 billion in gold and $505 million in money. Money holdings rose sharply from simply $51 million a month earlier.

With gold accounting for greater than 84 p.c of reserves, equal to 22.3 tonnes, Espinoza stated the central financial institution is drafting laws to amend the so-called Gold Regulation, which mandates a minimal holding of twenty-two tonnes. The proposed modifications would give policymakers larger flexibility in managing reserves.

He added that the financial institution can be getting ready for a gradual shift from a set alternate fee regime to a versatile, unified and market-based system.