Bolivian dollar bonds recorded their biggest drop in nearly six months after former socialist President Evo Morales announced he would run in the 2025 presidential election, adding to uncertainty in a country where investors are already concerned about declining gold reserves.
The country’s most liquid bond, due in 2028, fell more than two cents on Monday to about 58 cents, one of the worst performing bonds in emerging markets.
Values had already fallen in recent months, as the central bank sold gold to prevent the currency from weakening. Bolivia’s current president, Luis Arce, was economy minister during most of Morales’ 14-year rule, but relations between the two have deteriorated. In the last years.
The ruling Socialist Party is divided between Arce supporters and Morales loyalists, with each party accusing the other of corruption. Morales, 63, announced his candidacy on Sunday on the social networking site X. In his statement, Morales accused the Arce government of trying to marginalize. politically, and even falsely implicated him in corruption.
Arce, 59 years old, a British-trained economist, is considered less extreme than his mentor and more open to foreign investment.
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