Bolivia's Economic Turmoil: From Gas Riches to Financial Distress

Bolivia is facing its worst economic crisis in decades as inflation surges, gas exports decline, and currency reserves deplete. Political instability adds to the economic woes, with a failed coup attempt and intra-party conflicts. The scarcity of dollars impacts trade and fuel availability, pressing the need for economic reforms.

The burgeoning economic crisis in Bolivia has housewife Yola Chura grappling with rising food prices in El Alto. As inflation reaches its highest level in over a decade, the region's once-booming 'economic miracle' stumbles under soaring costs and dwindling gas exports, rattling the Andean economy's stability.

Gas exports, a crucial foreign income source, have halved over the past decade, reducing central bank reserves to nearly zero. The resulting scarcity of fuel and bolivianos has led to mounting imports costs and an emergent black market for dollars, a familiar phenomenon in struggling neighboring nations.

Political strife compounds economic challenges, with tensions escalating between President Luis Arce and former ally Evo Morales. Amid protests and accusations, the government insists on meeting its debt obligations while navigating difficulties with local currency distortions, affecting importers and industries reliant on foreign exchange.

(With inputs from agencies.)