A double currency auction for Exchange rate determination in Bolivia
DOI:
https://doi.org/10.35319/lajed.20182922Keywords:
Exchange rate regime, double auctions, foreign exchange market, BoliviaAbstract
This study presents a double auction competitive mechanism for the Bolivian foreign exchange market that would allow the Central Bank of Bolivia (BCB), as the mechanism’s “auctioneer”, to achieve a better understanding of the conditions surrounding the evolution of the foreign exchange market and how expectations are formed among its main players. With this information, and in line with its main policy objectives of preserving macroeconomic stability, strengthening local production and consolidating the process of de-dollarization in Bolivia, the BCB will have greater resources to apply a more active and effective foreign exchange policy.
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