Old Bolivian Currency: Worth More Than You Think

Bolivia's current currency is the boliviano (BOB), which is the second version of the country's currency to bear that name. The first boliviano was introduced in 1864 and remained in use until 1963, when it was replaced by the peso boliviano due to rising inflation. In 1987, the peso boliviano was replaced by the current boliviano, at an exchange rate of one million peso bolivianos to one boliviano.

The first boliviano (1864-1963)

The first boliviano was the currency of Bolivia from 1864 to 1963. Initially, it was worth eight soles or half a scudo in the former currency, and it was subdivided into 100 centésimos. In 1870, however, the name of the subdivision was changed to centavos. The name bolivar was used for a quantity of ten bolivianos.

In 1864, copper 1 and 2 centésimos, and silver 1/5 and 1 boliviano coins were introduced. Silver 5, 10 and 20 centavos were introduced in 1870, followed by silver 50 centavos in 1873 and copper 1 and 2 centavos in 1878. Cupro-nickel 5 and 10 centavos were introduced in 1883. The 50 centavos coin was last struck in 1879, and the 1 and 2 centavos coins were last struck in 1883.

The first boliviano banknotes were issued in 1873 by the Banco Nacional de Bolivia in denominations of 1, 5, 10, 20, 50 and 100 bolivianos. 20 and 40 centavo notes were added in 1875. Other banks that issued banknotes during this period include the Banco Agricola, the Banco de Bolivia y Londres, the Banco del Comercio, the Banco Francisco Argandoña, the Banco Industrial de La Paz (later the Banco Industrial), the Banco Mercatil, and the Banco Potosi, with denominations ranging from 1 to 100 bolivianos. The last issue of these private bank notes was made in 1911.

In 1903, the Treasury introduced notes in denominations of 50 centavos, 1, 5, 10 and 20 bolivianos. In 1911, the Banco de la Nación Boliviana began issuing notes, with the first issue consisting of denominations of 1, 5, 10, 20, 50 and 100 bolivianos. Regular issues in the same denominations followed later that year. In 1928, the Banco Central took over paper money issuance, introducing notes for 1, 5, 10, 20, 50, 100, 500 and 1000 bolivianos. 5000 and 10,000 boliviano notes were introduced in 1942.

The first boliviano was initially pegged at a rate of 1 boliviano = 5 French francs. On December 31, 1908, the currency was put on a new gold standard, with 12.5 bolivianos = 1 pound sterling (or 1s. 7.2d. sterling per boliviano). However, the boliviano continued to fall in value, and in 1940, multiple exchange rates to the U.S. dollar were established (40 and 55 bolivianos = 1 dollar). In 1963, due to rising inflation, the first boliviano was replaced by the peso boliviano at an exchange rate of 1000 bolivianos to 1 peso.

The peso boliviano (1963-1986)

The peso boliviano (BOP) was the currency of Bolivia from 1 January 1963 until 31 December 1986. It replaced the first boliviano due to rising inflation, at an exchange rate of 1,000 bolivianos to 1 peso boliviano. The peso boliviano was itself replaced by the second boliviano in 1987, at a rate of 1 boliviano = 1,000,000 pesos bolivianos.

The peso boliviano was introduced following a period of economic stabilisation in Bolivia, which had suffered from high inflation. The new currency was initially pegged to the US dollar at a rate of 11.875 bolivianos to 1 US dollar. However, inflation soon returned, and the peso boliviano was devalued in 1972, with a new official rate of 20.00 per US$1. This rate was maintained until 1979, when the peso boliviano was put on a controlled float, initially valued at 25.00 per dollar.

Inflation continued to accelerate, and the peso boliviano was devalued again in 1982 to 44 per US$1. The average exchange rate was 64.12 per US dollar in 1982, 229.78 in 1983, and 2,314 in 1984. By September 1985, the US dollar was worth a million pesos bolivianos on the black market. In response, President Paz Estenssoro announced a free exchange rate for the peso, which was floated on 29 August 1985, resulting in an effective devaluation of 95%. All exchange controls were lifted, and the exchange rate was set twice weekly according to supply and demand. The value of the peso boliviano continued to fall, and by January 1986, the government was setting a new exchange rate daily in an attempt to boost confidence in the economy. After reaching a low of about 2.2 million per US$1, the peso improved and stabilised at around 1.8–1.9 million per dollar.

During the period of the peso boliviano, banknotes were released in denominations of 1, 5, 10, 20, 50, 100, 500, 1000, 5000, and 10,000. The last peso boliviano-denominated coins were struck in 1980.

The second boliviano (1987-present)

The second boliviano has been the national currency of Bolivia since 1987. It was introduced to replace the peso boliviano, which had suffered from high inflation. The exchange rate was one second boliviano to one million peso bolivianos.

The second boliviano was initially worth roughly one US dollar. Since 2012, the Banco Central de Bolivia has held the boliviano's value steady at 6.9 bolivianos per US dollar. The inflation rate has also been kept low, registering just under 2% in 2019.

The second boliviano is issued and overseen by Bolivia's central bank, the Banco Central de Bolivia, which disseminates the currency in both coin and banknote formats. A single boliviano is made up of 100 subunits, called centavos. Boliviano coins come in denominations of 10, 20, and 50 centavos, as well as larger coins worth one, two, and five bolivianos. Banknotes are available in denominations of 10, 20, 50, 100, and 200 bolivianos.

The second boliviano is the most recent in a series of Bolivian currencies to carry that name. The first boliviano was introduced in 1864 and was replaced by the peso boliviano in 1963.

Exchange rates with the US dollar

The boliviano (BOB) is the national currency of Bolivia. The current iteration of the currency was introduced in 1987, but previous versions of the boliviano have existed since 1864. The boliviano is divided into 100 centavos, and the coins come 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 history of the boliviano is quite complex due to several different currencies sharing the same name. The first boliviano was introduced in 1864, replacing the Bolivian scudo at an exchange rate of 1 boliviano to 0.5 scudi. It was pegged to the French franc at a rate of 5 francs to 1 boliviano. However, in 1908, Bolivia adopted the gold standard, and the boliviano was pegged to the British pound at a rate of 12.5 bolivianos to 1 pound. From 1928 to 1938, the boliviano underwent a period of devaluation against the pound, and by the end of this period, the exchange rate had increased to 160 bolivianos per pound.

In 1940, the Bolivian government began accepting multiple exchange rates between the boliviano and the US dollar. Unfortunately, the boliviano continued to devalue, and by 1963, the government replaced it with a new currency, the peso boliviano, at an exchange rate of 1,000 to 1. However, due to persistent inflation, the peso boliviano was also replaced in 1987 with the modern boliviano, introduced at a rate of 1 million new bolivianos per peso boliviano.

Since the introduction of the current boliviano in 1987, the currency has been relatively stable. The Banco Central de Bolivia has maintained a fixed exchange rate of 6.9 bolivianos per US dollar since 2012. This stability has been achieved through partial privatisation of public-sector businesses and legislative policies aimed at promoting private investment. As of September 2024, the exchange rate for US dollars to Bolivian bolivianos is approximately 6.9129409 bolivianos per dollar.

Bolivia's economic growth

Bolivia's current currency is the boliviano (BOB), which is divided into 100 centavos. The boliviano was also the name of the country's currency between 1864 and 1963. The current version of the currency was introduced in 1987, replacing the peso boliviano (BOP) at a rate of 1 boliviano to 1 million peso bolivianos. This change was brought about by rampant inflation, which had also led to previous currency reforms.

Bolivia's economy is the 95th-largest in the world in nominal terms and the 87th-largest in purchasing power parity. It is classified as a lower-middle-income country by the World Bank. Bolivia's economy is largely driven by its natural resources, particularly natural gas and zinc in the mining industry, which currently dominates the country's export economy.

From 2006 to 2019, during the presidency of Evo Morales, Bolivia's economy quadrupled from a value of $9,573 million to $42,401 million. This growth was attributed to several factors, including the nationalization of natural resources, stability in the exchange rate, incentives for the domestic market, and strong public investment in infrastructure and industrialization. As a result, Bolivia's GDP per capita doubled, and the extreme poverty rate declined from 38% to 18%.

However, Bolivia continues to face challenges in maintaining economic stability and promoting growth. High public debt, declining natural gas production, and modest international reserves have limited the government's ability to boost growth. Additionally, the country is exposed to risks associated with the international context, such as volatile commodity prices, global economic slowdowns, and rising international interest rates.

To address these challenges, Bolivia needs to implement structural reforms. Encouraging private investment, promoting the development of the private sector, and boosting resilience to changes in the international environment are key strategies to achieve sustainable economic growth.

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