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AmericasMay 24 2023

Dollar scarcity threatens Bolivian banking system

A drop in foreign reserves and fears over devaluation are threatening the Latin American country’s economy, as its third-largest bank faces liquidation. Barbara Pianese reports.
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Dollar scarcity threatens Bolivian banking system

At the end of April, the Bolivian Financial System Supervisory Authority (ASFI) took control of Banco Fassil, the third-largest bank in the country, after a breach of its customer obligations. The police arrested several executives for alleged mismanagement at the same time.

The regulator intervened after receiving multiple complaints that the bank was not turning over deposits to its clients. In several cities, clients were queueing at bank branches to demand their savings. Client deposits total $2.7bn, according to data from Bolivia’s Ministry of Economy.

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Barbara Pianese is the Latin America editor at The Banker. She joined from Mergermarket, where she spent four years covering mergers and acquisitions across Europe with a focus on the consumer sector. She holds an MA in International and Diplomatic Affairs from the University of Bologna having studied in Brazil and France as well.
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