Bolivia’s central bank is introducing USD-denominated bonds as a new saving alternative for residents, aiming to bolster FX reserves. This initiative targets the redirection of approximately USD 10 bln held by Bolivians outside the banking system and abroad back into the country. The bonds offer attractive interest rates from 4.5% for 3-month terms to 6.5% for 3-year terms, significantly higher than local bank rates for USD deposits, which were as low as 0.04% for 90 days to 1.62% for 1 year as of October 2023.