BOB (Bolivian Boliviano)
What Is the BOB (Bolivian Boliviano)?
The Bolivian boliviano (BOB) is the national currency of Bolivia. Albeit the latest rendition of the boliviano was presented in 1987, previous variants of the currency have existed beginning around 1864.
All through 2020, one [U.S. dollar](/usd-US dollar) has bought 6.86 BOB.
Understanding the Bolivian Boliviano
The boliviano is issued and managed by Bolivia's central bank, the Banco Central de Bolivia, which disperses the currency in both coin and banknote designs.
A single boliviano is involved 100 subunits, called centavos. Boliviano coins come in denominations of 10, 20, and 50 centavos. Moreover, bigger coins worth one, two, and five bolivianos are likewise in circulation. Banknotes feature denominations of 10, 20, 50, 100, and 200 bolivianos.
History of Bolivia and its Currency
At the point when initially presented in 1864, the boliviano supplanted the Bolivian scudo at a rate of 1 boliviano to 0.5 Bolivian scudi. At that point, the boliviano pegged to the French franc at a rate of 5 francs to 1 boliviano. In 1908, notwithstanding, Bolivia abandoned this currency peg and adopted the gold standard, pegging the currency at 12.5 bolivianos to 1 British pound (GBP).
History of the Boliviano
The history of the Bolivian boliviano can be confounding, on the grounds that several unique currencies have shared the "boliviano" name. For example, the rendition of the boliviano presented in 1864 is substantially not quite the same as the boliviano being used today.
Following its adoption of the gold standard, the boliviano underwent a period of devaluation against the GBP enduring somewhere in the range of 1928 and 1938. Toward the finish of this period, the peg rate had increased to 160 bolivianos for each British pound.
In 1940, the Bolivian government started accepting different exchange rates between the boliviano and the U.S. dollar. By 1963, the boliviano had continued its devaluation, inciting the government to supplant it with another currency — the peso boliviano — which started circulation at an exchange rate of 1,000 to 1 relative to the previous variant of the currency. Proceeded with inflationary constrains drove Bolivia to supplant the peso boliviano with the modern boliviano in 1987, introducing it generally at par with the dollar, or 1 million new bolivianos for every peso boliviano.
Beginning around 1987, the central bank has permitted the boliviano to float uninhibitedly against different currencies. The government has likewise targeted inflation since that time, through partial privatization of public-area businesses and legislative policymaking designed to advance private investment.
The Bolivian Boliviano in reality
Beginning around 2012, Banco Central de Bolivia has held the boliviano's value consistent at 6.9 bolivianos per U.S. dollar. Simultaneously, the inflation rate has step by step go under control and registered just under 2% in 2019.
Bolivia's economy has additionally developed consistently over the course of that time period. Its [per-capita gross domestic product](/per-capita-gross domestic product), estimated in terms of purchasing power parity, has developed from around $4,800 per person in 2008 to more than $9,000 in 2019.
Features
- The Bolivian boliviano (BOB) is the national currency of Bolivia.
- Despite the fact that Bolivia has encountered huge currency devaluations in its recent history, the current boliviano has been relatively stable hitherto.
- Presented in 1987, it is the latest of a series of Bolivian currencies to carry that equivalent name.
