Weekly Report - 22 January 2026 (WR-26-03)

Fitch said that the upgrade “reflects easing risks of default or restructuring due to reduced political constraints on external financing, financing commitments from multilaterals, and the elimination of fuel subsidies, which should support fiscal deficit reduction and reserve accumulation”.

Just four days later, however, the central bank (BCB) president, David Espinoza, revealed that the bank was saddled with major gold debts by forward sales contracts agreed under former president Luis Arce (2020-2025). The BCB began purchasing gold from local miners in 2023 as the country’s international currency reserves appeared in danger of running out.

Espinoza, who was appointed by Paz, said that under Arce the BCB had been selling off gold to cover debt repayments and fuel imports, and that it had received advance payment for these sales. He said that in four operations between April and October 2025, the BCB received advance payment of US$1.26bn in return for the agreed sale of 9.6 tonnes of gold, of which 3 tonnes have subsequently been delivered.

 As a result, Espinoza said, the BCB now needs to purchase a further 6.6 tonnes of gold, valued at US$921m, before October, so that it can deliver the gold for which it received advance paym

End of preview - This article contains approximately 246 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial