Industrialists declare that if currency controls are approved, the productive apparatus will collapse

The National Chamber of Industry (CNI) announced in a statement that ‘Extreme state of alert’ It also heralded the collapse of industrial production equipment.

“The National Chamber of Industry declared itself in a “state of national emergency” and announced the collapse of the industrial production apparatus if the proposed currency controls were approved. COB made the following request to the government at the Social Cabinet meeting on August 13” the first paragraph of the statement said.

According to industrialists, “(they) are on high alert and reject proposals for currency controls. If approved, it will lead to a complete shutdown and collapse of nine departments across the country. This has resulted in shortages of goods on Bolivian tables and the failure to honour industrial export contracts.”

Furthermore, they detailed the following possible effects of this economic measure on the most important countries: 39,000 industrial economic units:

1. Danger of factory closures Given that the purchase of industrial capital goods, raw materials and intermediate industrial inputs cannot be paid abroad.

2. Public authorities allocate dollars by sector and economic sector as appropriate This will lead to a further intensification of the process of corruption and illegal enrichment of public officials.

3. Massive unemployment More than 600,000 industrial workers will be affected due to lack of raw materials and imported industrial intermediate inputs.

4. Loss of foreign markets The contract could not be fulfilled due to lack of foreign exchange for imports.

5. Inflation escalates This will affect Bolivian families like never before.

In view of this situation, “CNI Urge the government to take measures to revive the economy. Within the framework of the public-private dialogue announced by the President of the country in his presidential address on August 6, foreign exchange will be provided to the productive sector and hydrocarbons will be supplied to the domestic market.

Finally, they note that “national industry keeps the Bolivian economy alive; “Measures that lead to their extinction must be avoided.”