Boliviano

The boliviano is the official currency of Bolivia. It is abbreviated as BOB in ISO 4217 and uses the symbol Bs. The monetary unit is decimal, subdivided into 100 centavos. The currency is issued by the Banco Central de Bolivia and functions as fiat money within the national economy.

The boliviano was introduced in 1963 to replace the Bolivian peso, at a rate of 1 boliviano equal to 1,000 (old) pesos. During the late 1980s Bolivia faced hyperinflation, and in 1987 a temporary unit called the nuevo boliviano (NOB) was issued, with 1 nuevo boliviano equal to 1,000 old bolivianos. In 1994 the currency was renamed back to boliviano, eliminating the “nuevo” designation, as part of stabilization and monetary reforms.

As with most modern currencies, the boliviano’s value is determined by market forces in the foreign exchange system, with the Banco Central de Bolivia shaping policy, maintaining inflation control, and issuing currency. The boliviano circulates in the form of banknotes and coins, produced for everyday transactions in a range of denominations.

The boliviano is the sole legal tender for most domestic transactions in Bolivia, although foreign currencies are sometimes used in tourist areas or informal border trade. The currency remains a central element of Bolivia’s monetary policy and economic identity.