Bolivia’s net international reserves increased by nearly $100 million as of February 28, from $6.213 billion to $6.310 billion, according to the Central Bank of Bolivia. Gold prices and the January trade surplus contributed to this increase.
The price of gas fell from $5.46 to $1.7 per million BTUs. According to the Bolivian Institute of Foreign Trade, 32% of Bolivia’s exports in 2019 correspond to the hydrocarbon sector. Gas exports finance up to 27.6% of the General State Budget; therefore, the Government has to make adjustments.
Due to the fall in oil prices, Bolivia’s gas revenues will decline at the same rate as oil in the global market. The companies YPFB and Petrobras signed an addendum to the gas purchase and sale contract, keeping the price of gas indexed to the cost of WTI crude, which so far stands at $31 per barrel. YPFB anticipates that oil revenue will fall by up to 35%.
The price of chicken is falling and generating uncertainty within the poultry sector. The drop in price is 43.3%, from Bs 16 to Bs 8.5 per kilo ($2.3 to $1.2 per kilo) . The phenomenon is due to an oversupply of 3 million chickens in February.
Santa Cruz Governor’s Office announced that the drop in the price of oil from $45 to $32.2 per barrel would affect the Departmental Government’s income. Departmental works depend on 60% of gas revenues from the Direct Hydrocarbon Tax. The preparation of the budget in August last year based on a price of $51 per barrel, so some works will have to stop.
The National Council for the Fight against Drug Trafficking (Conaltid) reported that drug trafficking moves US$2.5 billion in the national economy, representing 8% of the Gross Domestic Product (GDP). This figure comes from the Financial Investigations Unit (FIU) of the 2016 administration.
