By Esneyder Negrete |
La Paz (EFE).- The “conversion attempt” that took place on June 26 produced a mixed effect on Bolivia’s popular economy, as some sellers experienced a brief increase in demand and prices, while others attributed this increase. Consequences of the climate crisis and the volatility of the dollar.
On a tour of Calle Carcilazo de la Vega and the Rodríguez Market, two of the most important popular markets in the city of La Paz, stalls line the streets offering groceries, fruit, clothes and meat from different animals. EFE was able to verify that there is no consensus among businessmen about the “conspiracy attempt” condemned by Bolivian President Luis Arce and the impact it could have on the popular economy.
“The alleged blow hurt a bit. Although it has been a few days indeed. Because everything is back to normal,” David Fernandez, a retailer who has been on Carcilazo de la Vega Street for more than 40 years, tells EFE.
For Fernández, on Wednesday afternoon, people went out to buy food (potatoes, eggs, among others), minutes after tanks arrived at Plaza Murillo and tried to force their way into the presidential palace on the orders of the now-imprisoned ex-military leader Juan José Zunica.
According to him, there was no sale for two days at this populous market where customers browsed piles of blankets, cleaning and household goods ranging from blankets, cleaning and household goods to batteries and other gadgets as buyers left in droves last Wednesday for what little cash they had.”
Price speculation
The June 26 situation, which fueled fears among Bolivians due to episodes similar to the 2019 crisis, gave way to price speculation that many traders took advantage of.
“In two parts they say they really speculated. They sold very expensive, thanks to those who are really looked down upon,” said Felix Rafael Quispe Limachi, a butcher at the Rodriguez market, one of the oldest and most emblematic markets in La Paz, known for a variety of fresh produce. Foods, traditional Bolivians and local handicrafts.
Last Monday, as EFE was able to verify, the average price of meat in the area was 45 bolivianos (about 7 dollars) per kilo, and on Wednesday, during the coup attempt, some traders “charged more than 80 bolivianos (about 12. dollars),” he says. Quisbe.
The impact of the dollar on the Bolivian economy
For other traders and consumers, recent changes in the prices of the Bolivian basic basket are not tied to recent political events in the country and attribute price increases to factors such as the impact of the climate crisis or the volatility of the dollar.
“The attempted coup did not really affect prices,” an informal seller told EFE, who wished to remain anonymous.
Similarly, the seller says that in his position to stand out from others by offering oranges and tangerines with good shape and texture, he had to increase the value until he sold 25 units for 10 bolivianos and sold for 18 bolivianos. The drought that occurred last year, which did not yield good yields and created a shortage of fruits.
While the dollar trades at 6.96 bolivianos per greenback on the official market, informal money changers are paying it at 9.10 bolivianos, as EFE was able to verify on the streets of La Paz city.
“I change dollars at 9.10 bolivianos, but I only change high-value bills (5, 10, 20, 50 or 100 dollars). If the amount is small, I change them, but only at 8 bolivianos per dollar,” the money changer told EFE on condition of anonymity. Place said.
This volatility in the currency affects the price of the underlying basket, according to traders. Because, as a Tangerine seller told EFE, they realize the prices of the things they bring in, like rice, are going up. Santa Cruz region, “But it’s not because of the coup, because they charged us for expensive rice before, and they say it’s because of the dollar.”
