Bolivia Central Bank Withdraws 7.43 Billion Bolivianos From Financial System

According to Sina Finance, Bolivia's central bank said it withdrew 7.43 billion bolivianos from the financial system in August, compared with an initial plan of 2.19 billion bolivianos. The funds came from liquidity generated by gold purchases and by buying U.S. dollars to build international reserves. The central bank said it absorbed part of the liquidity through securities issuance and by raising reserve requirements. It also said August money injection reached 2.22 billion bolivianos, versus a planned contraction of 14 million bolivianos. The bank has implemented a new 3% reserve requirement for deposits, and as of July, Bolivia's monetary base had contracted by 11.8 billion bolivianos.