House leader Jerges Mercado, of the ruling MAS party,
scrapped the abstentions to declare the 54 votes in favor,
versus 24 against, as sufficient to declare the bill's success.
The bill must still be passed by the Senate and signed into
law by President Luis Arce, who has supported the measure.
Bolivia held around $3.54 billion in net reserves at the
beginning of February, a sharp slide from a peak of more than
$15 billion in 2014, according to central bank data.
The central bank currently holds some 43 tonnes of gold,
central bank president Edwin Rojas told local media in March.
Using the spot price of the metal, gold would represent around
three-fourths of the bank's reserves.
Central banks hold gold in their reserves as its value is
considered to hold course through economic turmoil and it allows
countries to diversify from the U.S. dollar and Treasury assets.
The bill in Bolivia will allow the central bank to purchase
gold directly from miners at global prices, a measure also meant
to reduce smuggling.
The bill was first proposed in 2021. If it had taken effect
then, international reserves would have gained some $1.2 billion
in 2022, according to official estimates.
(Reporting by Daniel Ramos; Writing by Kylie Madry; Editing by
Jan Harvey)
LA PAZ, April 21 (Reuters) - Bolivia's lower house of
Congress passed a bill early Friday to purchase gold from miners
in an attempt to boost the central bank's foreign reserves as
fears over a shortage of dollars rippled through the country.
In a controversial vote which carried on through the night,
the bill failed to pass by majority vote, with more than a third
of the house abstaining.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.