UPDATE 1-Bolivia's switch to flexible exchange rate 'important step', IMF says
Adds IMF comments, details
LONDON, July 1 (Reuters) - The International Monetary Fund has called Bolivia's shift to a flexible exchange rate after 15 years of pegging its boliviano currency to the dollar an "important step" and said it remains committed to supporting the country's economic repair plans.
The IMF recommended ditching the dollar peg last year, and economists view the move as one of the key requirements for centrist President Rodrigo Paz's government to secure a $2.5 billion to $3 billion support programme from the Fund.
"We welcome the orderly transition to a more flexible exchange rate regime, an important step toward restoring external sustainability and reviving the domestic foreign exchange market," an IMF spokesperson said in response to e-mailed questions.
"The Fund remains committed to supporting the authorities, including on the operational aspects of the new regime and related policies."
The exchange rate move showed Paz's government was pushing on with its economic reform plans despite months of public protests at fuel subsidy cuts and other changes that left 14 people dead and crippled the economy after key roads were blockaded.
The new FX regime began at 9.73 bolivianos per dollar and was set at 9.76 to the dollar on Wednesday. That is roughly 30% weaker than the old official rate, which had been largely unchanged since 2011 at 6.86 bolivianos per dollar for purchases and 6.96 for sales.
