Bolivian congress brawls over China, Russia lithium deals
It was the latest outburst of growing tension over Bolivia's efforts to fast-track foreign investment to exploit its lithium reserves, which are among the largest in the world.
Opposition lawmakers and others loyal to former President Evo Morales disrupted the lower house session that targeted Energy Minister Alejandro Gallardo as he tried to defend the pending contracts.
"They are trying to swindle us," said opposition lawmaker Daniel Rojas, one of those opposing the contracts they say are unfavorable to the state, and demanding that profits for Bolivia be secured before the lithium is sold.
Thursday's session devolved into scuffles, with lawmakers pushing, shouting and throwing stacks of paper at congressional leaders.
Video images showed an opposition lawmaker, Maria Salazar, tussling with another member, while a lawmaker later tore away an umbrella from a chamber leader using it to try and bat away the barrage.
Legislators and civic leaders from the mineral-rich Potosi region, home to Bolivia's vast lithium deposits, joined the protest.
"We warn (President) Luis Arce, (and) the leader of the lower house, if you continue insisting on this illegal and unconstitutional process, you will be met with a mobilized population," said opposition lawmaker Lissa Claros.
Protesters said they feared the deals would not benefit local communities and would cause environmental damage.
"We want conditions so that the local people ... can have a dignified life," said Alberto Perez Ramos, president of the Potosi Civic Committee (COMCIPO).
"The government isn't interested in that; the government is only interested in its own pockets."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BBC News
2 days ago
- BBC News
Business Daily Bolivia's ongoing economic crisis
Available for over a year The country was the economic success story of the 2000s. But declining natural gas production has lead to a downturn. Now, fuel and food prices are soaring and Bolivian businesses are floundering. Inflation is around 15% - one of the highest rates in the region. There are protests in the streets - so what could help this once prosperous country? And will the upcoming general election change things? Produced and presented by Jane Chambers (Image: El Alto shoe salesman Fernando Gutierrez in his store. He says business is slow)
Coin Geek
3 days ago
- Coin Geek
Bolivia taps El Salvador for guidance; Algeria bans 'crypto'
Getting your Trinity Audio player ready... The South American nation of Bolivia lifted its decade-long ban on digital assets a year ago, and since then, trading has skyrocketed. It's now seeking to regulate the sector and has tapped neighboring El Salvador for guidance. While Bolivia warms up to digital assets, Algeria is moving in the opposite direction. The North African country has announced a sweeping ban on 'crypto,' criminalizing all digital asset activities. Bolivia taps El Salvador for 'crypto' guidance The Central Bank of Bolivia (BCB) has signed a Memorandum of Understanding (MoU) with El Salvador's National Commission for Digital Assets (CNAD) to share knowledge and exchange regulatory and technical expertise. The MoU took effect immediately and will remain in force indefinitely, the two revealed in their announcement. The regulators will share their experience in blockchain intelligence tools, data analytics, risk analysis, and market oversight. They'll also jointly train their staff and exchange information on virtual asset service providers (VASPs) operating in both countries. BCB Acting President Edwin Rojas Ulo, who signed the agreement with CNAD's Juan Carlos Reyes García, says it's part of the Bolivian government's ongoing efforts to promote digital asset adoption in the country. However, Bolivia is keen to ensure this growth is within the existing legal framework and protects investors while preserving monetary stability. CNAD reiterated its commitment to promoting digital assets in the region, with Garcia pledging the agency's support to any South American country expanding its 'crypto' presence. El Salvador was the first country globally to adopt BTC as legal tender (although it didn't pan out as President Nayib Bukele expected); Garcia says this has equipped it with experience in managing digital assets, and it's willing to lend this expertise to its neighbors. The MoU is Bolivia's latest effort to boost digital asset adoption after lifting its decade-long ban in June 2024. While announcing the ban in 2014, it claimed it was protecting its official currency, boliviano, from depreciation and preventing 'crypto' use in illegal activities like money laundering and tax evasion. Ten years later, the government changed tune as adoption peaked in other Latin American nations like Argentina, Brazil, Venezuela, and El Salvador. According to BCB data, digital asset transactions soared over 500% in the first six months of this year to hit $294 million. Source: BCB Digital assets '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 central bank said. For Bolivians, digital assets offer the best alternative amid a steep depreciation of the local currency and peak inflation. This year alone, the boliviano has lost half its value against the USD in the black market, with official dollar reserves plummeting to near zero. Algeria bans digital assets As Bolivia opens up to digital assets, Algeria is heading the other way. The North African nation has enacted a new law that criminalizes any use, exchange or mining of digital assets. According to a local report, the crackdown was enacted through Law No. 25-10 of July 24, 2025, and takes effect immediately. Under Article 6A, Algerians are prohibited from issuing, purchasing, selling, possessing, using, or promoting digital assets. It's also illegal to develop or operate trading platforms or digital wallets, individually or through third-party online platforms. Beyond trading, Algeria has also banned block reward mining. The country's mining activities are insignificant compared to other African countries like Ethiopia, but it is gaining ground in the southern provinces where electricity is much cheaper. Algerians who violate the new law face a prison sentence not exceeding one year, a fine ranging from 200,000 dinars ($1,500) to 1 million dinars ($7,700), or both. These penalties could be heightened if the 'crypto' usage is linked to other forms of organized crime, like money laundering. The new ban was unexpected and bucks a global trend where governments are racing to enact the friendliest laws to boost adoption and attract global capital. It also comes against the backdrop of rapid adoption in Algeria. According to a Chainalysis report last September, the country was the fourth-fastest growing by value received in the Middle East and North Africa (MENA) region, outpacing titans like the United Arab Emirates, Israel, and Egypt. Source: Chainalysis Watch: Is your company ready to ride the wave of blockchain adoption? title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Reuters
5 days ago
- Reuters
Investors betting voters in Bolivia will make a turn to the right
Aug 8 (Reuters) - Bolivia's international bonds have rallied ahead of a fiercely contested presidential election, fueled by investors' hopes that a political U-turn could help shore up the country's fragile economy and pave the way for an IMF program. The South American nation of 12 million people is engulfed in a crisis marked by inflation at a four-decade high, dwindling dollar reserves and a fiscal squeeze in which the government must choose to service debt or pay for fuel and food imports. Bolivia's international bonds, however, have enjoyed a stellar rally since the start of 2025. With a return of more than 30%, they are one of the top performers in JPMorgan's emerging markets bond index, which across the asset class has returned slightly more than 7%. Citigroup recently upgraded its assessment on Bolivian bonds to "neutral" from "underweight." Having started the year below 60 cents, Bolivian government bonds have scaled multi-year highs in recent days and are trading in the mid-70 cent range - well above the 70 cent threshold below which debt is seen as being in distress. (.JPMEGD), opens new tab, , A change in government "is likely to be quite positive for the economy, which has been on an unsustainable fiscal and current account position for so many years," said Carlos de Sousa, emerging markets debt strategist at Vontobel Asset Management. "A restructuring could be avoided, particularly if the country gets an IMF program soon after," de Sousa said, adding that turning to the International Monetary Fund for support would be a political choice. Bolivia's political landscape is dominated by a power struggle that has fractured the incumbent left-leaning Movement to Socialism (MAS) party. Polls show it winning about 12% of the vote in the first round of the elections on August 17. Evo Morales, who ruled the country from 2006 to 2019 under the MAS banner, has been barred from running for another term as president. Betting websites peg the chances of a win for center-right businessman Samuel Doria Medina, the National Unity party's presidential candidate, at more than 50%. Favored by markets, he has pledged to restore central bank autonomy, tackle a dollar shortage and take on corruption. To avoid a runoff, which has been scheduled for October 19, a candidate must secure more than 40% of the vote as well as have a lead of at least 10 percentage points. The election is taking place at a critical time for Bolivia's $50 billion economy. Central bank-financed fiscal deficits have become a major flash point, revenues from gas exports - a big source of hard currency for the government - have dwindled and the central bank has been forced to spend precious reserves defending the boliviano currency's peg to the dollar. The gap between parallel and official exchange rates has blown out to 80%, the IMF says. Despite the recent spurt of optimism, investors remain worried that political infighting and falling gas export revenues could jeopardize the country's ability to service upcoming debt payments - large chunks of which are due in the first quarters of the next three years. Bolivia's external debt amounted to about $13.3 billion by the end of 2024, of which $1.8 billion is in hard-currency bonds and the remainder in multilateral and bilateral loans, according to its central bank. Foreign exchange reserves were at a record low of about $165 million in April, central bank data shows. JPMorgan calculates that the country's liquid reserves are only $100 million. The IMF puts reserves at two months worth of imports - well below the minimum threshold of the equivalent of three months. Earlier this year, the three major credit rating agencies downgraded Bolivia's rating deeper into junk. S&P Global said the economic circumstances could impair the government's ability to service debt over the next six to 12 months. Some relief may come from loans worth more than $1 billion from official lenders like the World Bank and the Japan International Cooperation Agency that have been secured but not drawn down amid government infighting, and which analysts expect could be unlocked by a new government in La Paz. Monetizing Bolivia's vast lithium deposits could also bring in financing. But the real silver lining - at least for investors - would be an IMF loan program. It would, however, require painful reforms. The IMF said in May, opens new tab that the Bolivian government should ditch the dollar peg, lift capital controls and phase out fuel subsidies, among a raft of other policy changes. It estimates Bolivia's economy will grow 1.1% in 2025 and 0.9% next year - less than half the 2.2% growth expected across broader Latin America this year and the 2.4% forecast for the region in 2026. With a balance of payments crunch looming, analysts say, the next government might not have much choice. "All these liberalizing reforms will eventually allow the economy to flourish, but there's going to be some short-term pain as you shut down money-losing businesses, cut fuel subsidies, and unshackle the economy," said Ajata Mediratta, partner at Greylock Capital Management. "Very few countries can do that in an election year."
