The British holding company recommends “the purchase of Bolivian bonds” due to the stabilization of international reserves, which was “one of the main concerns of investors.”

The British holding company Barclays, a prominent financial services company based in London, United Kingdom, highlighted Bolivia's Gold Law and recommended investing in the country's sovereign bonds.

Barclays PLC is a financial services company headquartered in London and operating globally. It is a holding company listed on the London Stock Exchange, the New York Stock Exchange and the Tokyo Stock Exchange. It acts through its subsidiary Barclays Bank PLC, which is the sixth oldest bank in the world and the second oldest in the United Kingdom.

The Barclays report recommends “the purchase of Bolivian bonds” due to the stabilization of Net International Reserves (RIN), which was “one of the main concerns of investors.”

“Consequently, we recommend the purchase of Bolivian bonds,” reads the Barclays document, which recently highlighted the economic situation of Bolivia and its effective management in stabilizing the RIN.

The company confirmed that the Bolivian authorities adopted a proactive stance to stabilize international reserves.

PROACTIVE POLICIES

The authorities' proactive policies include 10 measures to increase net dollar inflows, although these have not yet fully materialized, he notes. Likewise, the application of Law 1503 on the purchase of Bolivian gold aimed at strengthening international reserves stands out.

“The policies aimed at supporting the reserves have managed to stabilize them and the authorities' 'Gold Law' is now fully operational,” indicates the aforementioned report from the English company, according to an ABI report.

In this understanding, Barclays mentioned that the reserves data corresponding to the December - April period, published on May 2, show stabilization since September 2023.

The April data on gold reserves makes it possible to follow on a monthly basis the pace at which Bolivia is purchasing gold and, more importantly, the pace at which gold is being certified and refined, he explains.

“We were positively surprised by the pace at which Bolivia purchased gold and, most importantly, its ability to refine, certify and sell gold for dollars,” he reveals.

ECONOMIC STABILITY

According to analyst Martín Moreira, Barclays PLC is a prominent financial services company based in London, which operates on a global scale. As a transatlantic bank, it is dedicated to consumer, corporate and investment banking.

“This perspective given by Barclays reinforces confidence in Bolivian financial institutions and highlights the importance of the proactive policies adopted to maintain the country's economic stability,” said the expert.

He emphasized that Barclays launched a call to international investors to consider investing in Bolivian sovereign bonds. The financial entity maintains that, although a more comprehensive political approach is required, the work carried out by the BCB, to maintain and increase international reserves, is marginally positive.