Bolivia: Selected Issues

International Monetary Fund

No 2010/029, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper derives estimates of optimal levels of reserves for Bolivia, focusing on current account shocks as the key balance of payments risk. Bolivia’s foreign reserves are adequate, with an optimal level between 29 percent of GDP and 37 percent of GDP. The accumulation of foreign assets stemmed primarily from a persistent current account surplus, in the context of a crawling peg exchange rate regime. Large current account surpluses followed from major terms of trade improvement after the sharp increase in Bolivia’s key export commodity prices during the period 2004–08.

Keywords: ISCR; CR; hydrocarbon revenue; revenue; Bolivia; surplus; reserve; sensitivity analysis; IDH revenue; General government; opportunity cost; government's commitment; precautionary motive; government expenditure; excess reserves; Reserve positions; Fiscal union; Revenue sharing; Fiscal stance; Public sector (search for similar items in EconPapers)
Pages: 19
Date: 2010-01-29
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=23585 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2010/029

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().