Latest news with #BancoCentral
CNA
19 hours ago
- Business
- CNA
Bolivia crypto transactions up over 530% amid currency woes
Bolivia's central bank on Friday reiterated a dramatic uptick in transactions of digital assets, following a Reuters report that showed how more Bolivians were turning to crypto exchanges like Binance and stablecoins like Tether as a hedge against the depreciation of the local boliviano currency. According to new figures published on Friday by the Bolivian central bank, transactions using Electronic Payment Channels and Instruments for Virtual Assets (VA) soared more than 530 per cent, from $46.5 million in the first half of 2024, to $294 million in the same period of 2025. New figures showed monthly transactions at a record $68 million in May. "These tools have facilitated access to foreign currency transactions, including remittances, small purchases and payments, benefiting micro and small business owners across various sectors, as well as families nationwide," the bank said in a statement. Cryptocurrencies were outlawed in Bolivia until June last year. Since the ban was lifted, transaction volumes reached $430 million across more than 10,000 individual operations, the bank said. The Bolivian government was working on a "comprehensive regulatory framework for financial technology companies," that aligns with international standards set by the Financial Action Task Force of Latin America (GAFILAT), the bank added. Bolivians are facing an acute economic crisis, with reserves of dollars near zero, inflation at 40-year highs and fuel shortages causing long lines at the pump. The South American country's currency has lost half its value on the black market this year, even as the official exchange rate has been held artificially steady by government intervention. That has meant more Bolivians are looking for alternatives to protect their savings and make transactions. Crypto proponents have pushed blockchain-based tokens as an answer, though economists warn that these digital offerings come with risks. "This (crypto uptick) isn't a sign of stability," said former central bank head Jose Gabriel Espinoza. "It's more a reflection of the deteriorating purchasing power of households."
Reuters
a day ago
- Business
- Reuters
Brazil central bank sees rate cut debate as premature, says official
June 27 (Reuters) - Brazil's central bank is not currently discussing potential interest rate cuts, director Diogo Guillen said on Friday, reaffirming that policymakers remain focused on bringing inflation back to target over the relevant horizon. "That seems like a very distant debate," he said at an event hosted by Barclays in Sao Paulo, adding it would be "far too premature" to talk about what might lead the bank to ease borrowing costs. Earlier this month, the central bank raised its benchmark interest rate by 25 basis points to 15%, a near two-decade high, and signaled it expects to hold it steady for a "very prolonged" period. Guillen said the pause was announced to assess whether the cumulative 450-basis-point increase since September had been enough. "As the cycle evolves, you reach a more contractionary interest rate level, which also allows more time to observe the lagged effects (of monetary policy)," he added. Guillen also emphasized that the central bank is targeting the midpoint of the inflation goal, set at 3%, and aims to reach it within the relevant monetary policy horizon, which currently extends to the fourth quarter of 2026. Brazil's economy has "undoubtedly" shown resilience, but there are signs of a slowdown in growth, he added. Guillen said that the debate over the reasons behind recent economic strength involves several hypotheses involving stronger consumption, credit expansion, labor market dynamics and the effects of social benefits.
Bloomberg
a day ago
- Business
- Bloomberg
Chile Central Bank Policymaker Sees Good Omens After Long Inflation Fight
Chile's central bank sees a set of factors coming together that will help bring inflation back down to target early in 2026, board member Luis Felipe Cespedes said in an interview. Core inflation is slower than estimates from earlier this year, and salary growth is expected to moderate gradually, Cespedes said from the bank's headquarters in downtown Santiago. In fact, consumer prices would be at the 3% goal already if it weren't for electricity tariff hikes over the past year, he said.
Reuters
2 days ago
- Business
- Reuters
Brazil central bank stands by inflation target despite forecast gap
BRASILIA, June 26 (Reuters) - Brazil's central bank remains "absolutely" committed to pursuing its 3% inflation target, its governor said on Thursday, despite the bank having signaled it will hold rates even as projections show inflation staying above the goal through 2027. Speaking at a press conference, Gabriel Galipolo said the central bank's projections take into account the expected interest rate path reflected in the median estimates from private economists in the Focus survey its conducts weekly. However, he emphasized that this path does not necessarily represent the rate trajectory the bank will follow. "There are several paths to reach the center of the target," he said. "We are absolutely committed to it." Last week the central bank raised its benchmark interest rate by 25 basis points to 15%, a near two-decade high, and signaled a "very prolonged pause" in its efforts to tame consumer prices. In their policy statement, policymakers had also emphasized they would not hesitate to resume rate hikes if needed. Galipolo said on Thursday the monetary authority would assess a broad set of indicators, rather than any single metric, when evaluating whether to opt for a new rate increase. Earlier in the day, the central bank's quarterly monetary policy report projected annual inflation at 3.2% by the end of 2027, still above the 3% target, which has a tolerance band of 1.5 percentage points in either direction. For the fourth quarter of 2026, the relevant horizon for current policy decisions, annual inflation is seen at 3.6%. In the same press conference, economic policy director Diego Guillen stressed that the central bank was not extending the horizon to meet its inflation target. Galipolo also said that this week's foreign-exchange interventions were aimed at addressing a specific issue related to coupons, and did not signal any change in the bank's currency policy.
Reuters
4 days ago
- Business
- Reuters
Brazil's Haddad says debate over increasing public spending is frozen
SAO PAULO, June 24 (Reuters) - Brazilian Finance Minister Fernando Haddad said any debate on increasing public spending is frozen until the government ensures fiscal sustainability, according to an interview with Record TV published on Tuesday. Haddad stated that no new spending increase would be welcome unless it is essential. The minister also voiced concern over the central bank's monetary policy, calling the country's benchmark interest rate "very, very restrictive" and well above projected inflation. The central bank last week raised the benchmark rate by 25 basis points to 15%, the highest since 2006, and signaled an extended pause ahead. The minister argued that the recent rate hikes took place amid an inflationary scenario - particularly regarding food prices - that is being solved. The full interview will be broadcast by Record News later in the evening.
