In 2025, the previous administration under ex-President Luis Arce implemented four forward sales agreements of a total 9.6 tons of gold, designed to secure foreign currency for fuel imports. While 3 tons have been delivered, 6.6 tons valued at approximately $921 million remain due in three installments throughout 2026. BCB President David Espinoza described this as a significant “financial legacy” requiring the current administration’s attention and resources to fulfill. The Central Bank plans to actively repurchase this amount by October 2026.
Additional irregularities identified involve prepaid gold purchases totaling nearly two billion bolivianos with private firms and a separate incident where nearly one ton of gold, sent abroad for refining, was temporarily detained due to foreign legal complications but was later repatriated after diplomatic intervention. The BCB has initiated investigations into these atypical transactions to ensure legal compliance and accountability.
Significantly, the BCB emphasized that past strategies prioritizing gold purchases for immediate resale to finance fuel imports are unsustainable. The new government’s policy includes eliminating fuel subsidies to reduce reliance on such financing models, aiming to save $10 million daily on import costs and improve fiscal stability. The Bank also advocates revising legislation limiting gold reserve management to permit greater asset diversification, aligning Bolivia with international reserve management standards and mitigating exposure to gold price volatility.
This article was curated and published as part of our South American energy market coverage.
