LA PAZ (Reuters) – Bolivia’s senate early on Friday morning gave closing approval to a so-called “gold legislation” aimed toward strengthening the nation’s overseas forex reserves.

The laws, which was supported by the ruling social gathering and permits the central financial institution to monetize its gold reserves, will now be despatched to President Luis Arce to signal into legislation inside 10 days.

Fears over a scarcity of {dollars} in latest months have fanned broader worries over an financial disaster in Bolivia, the place overseas forex reserves have been falling for years and the place the native forex is pegged to the dollar.

In a press release after the vote, Bolivia’s central financial institution mentioned the legislation was the results of a “consensus with gold producers, mining cooperative members, social and union organizations from completely different sectors and nationwide legislators.”

The brand new legislation will permit the central financial institution to purchase uncooked gold from mining cooperatives within the nation and convert it into gold forex or bars to commerce on worldwide markets.

“We now have permitted the legislation by majority … It’s to make sure a steady economic system within the plurinational state,” mentioned Hilarion Mamani, a senator for the ruling leftist social gathering MAS.

Bolivia’s internet overseas reserves have fallen from a peak above $15 billion in 2014 to lower than $4 billion now.

“Bolivia has a deep disaster and this legislation is barely a palliative,” mentioned opposition Senator Andrea Barrientos after the talk.