The Bolivian Boliviano: Understanding Its Intrinsic Value

The boliviano is the national currency of Bolivia, with the symbol Bs and the ISO 4217 code BOB. The current boliviano was introduced in 1987, but previous versions of the currency have existed since 1864. The boliviano is divided into 100 subunits called centavos, with coins available in denominations of 10, 20 and 50 centavos, as well as 1, 2 and 5 bolivianos. Banknotes are available in denominations of 10, 20, 50, 100 and 200 bolivianos.

The current boliviano

The boliviano is issued and managed by Bolivia's central bank, the Banco Central de Bolivia. The central bank has allowed the boliviano to float freely against other currencies since 1987. The government has also targeted inflation through partial privatisation of public-sector businesses and legislative policymaking designed to promote private investment.

The first boliviano

The boliviano is the currency of Bolivia, and the name of two distinct currencies used at different times in the country's history. The first boliviano was in use from 1864 to 1963 and was worth eight soles, divided into 100 centécimos (later centavos). The name bolivar was used for an amount of ten bolivianos.

In 1940, the Bolivian government began accepting multiple exchange rates between the boliviano and the US dollar. By 1963, the boliviano had continued to depreciate, prompting the government to replace it with a new currency, the peso boliviano, which was worth 1,000 first bolivianos.

The current boliviano was introduced in 1987 at a rate of one boliviano to one million peso bolivianos. The current boliviano is divided into 100 subunits called centavos, with coins available in denominations of 10, 20, and 50 centavos, as well as one, two, and five bolivianos. Banknotes are available in denominations of 10, 20, 50, 100, and 200 bolivianos.

The peso boliviano

The second boliviano was introduced with new coins and banknotes. In 1988, stainless-steel 2, 5, 10, 20, and 50 centavo coins, as well as 1 and 2 boliviano coins, were introduced. The 2 boliviano coin was minted in two sizes, with the smaller coin resembling the 1 boliviano coin, though the 2 boliviano coins are undecagonal while the 1 boliviano coins are round. In 1991, the 2 boliviano coin was replaced by a note, and in 1997, copper-plated steel 10 centavo coins were introduced. In 2001, the 5 boliviano note was replaced by a bimetallic coin, and the 2 and 5 centavo coins were discontinued.

The second boliviano

In 1988, stainless-steel 2, 5, 10, 20 and 50 centavo coins and 1 boliviano coins were introduced, followed by stainless-steel 2 boliviano coins in 1991. Copper-plated steel 10 centavo coins were introduced in 1997, and bi-metallic 5 boliviano coins in 2001. The 2 and 5 centavo coins are no longer in circulation.

The 2 boliviano coin has been minted in two sizes, both of which are still legal tender. The smaller 2 boliviano coin is almost identical to the 1 boliviano coin, which can cause confusion. However, the 2 boliviano coins are undecagonal, while the 1 boliviano coins are round. All the coins in Bolivia feature the inscription "La union es la Fuerza" ("Union is strength" in Spanish) on the obverse. Older coins feature the coat of arms of Bolivia with the inscription "Republica de Bolivia" (Republic of Bolivia) on the reverse, while newer ones feature the coat of arms with the inscription "Estado Plurinacional de Bolivia" (Plurinational State of Bolivia).

The Bolivian sol

In 1963, the boliviano was replaced by the peso boliviano due to its continued depreciation. The peso boliviano was worth 1,000 first bolivianos. However, due to persistent inflationary pressures, the peso boliviano was replaced by the modern boliviano in 1987, introduced at par with the US dollar or 1 million new bolivianos per peso boliviano.

The current boliviano is the second version of the currency and has been relatively stable. It is issued and managed by Bolivia's central bank, the Banco Central de Bolivia, in both coin and banknote formats. The central bank has allowed the boliviano to float freely against other currencies since 1987 and has targeted inflation through partial privatization of public-sector businesses and legislative policies promoting private investment.

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