30% looted, notes cancelled: How Bolivia is trying to contain cash chaos
Bolivia’s central bank has moved to calm a wave of public panic after a military cargo plane carrying newly printed banknotes crashed at El Alto International Airport on February 27, scattering cash across roads near La Paz and triggering looting and confusion over which notes are still valid.
Authorities say about 30% of the money was stolen in the aftermath of the crash, as crowds rushed to collect bundles of cash at the scene. Police used water and tear gas to disperse people trying to access the wreckage, and prosecutors have since pursued suspects linked to the looting.
To prevent stolen notes from entering circulation, the Central Bank of Bolivia (BCB) invalidated banknotes from the affected “Series B” batch and later published the serial number ranges linked to the crash. The BCB also set up an online serial-number verifier so the public can confirm whether a Bs10, Bs20 or Bs50 note has been invalidated.
The response, however, has also fuelled disruption in daily trade. Reports say some businesses and transport operators have refused to accept even legitimate “Series B” notes, forcing many Bolivians to queue at banks and the central bank to check and exchange cash.
Central bank chief David Espinoza has urged the public to cooperate and accept legal tender, warning that the crash-linked bills were identifiable and unauthorised. “The banknotes are not authorised for circulation… Anyone who holds these banknotes is committing a crime and must return them to financial institutions,” he said.
Investigators are still examining what caused the crash. The pilot told investigators the runway was icy and the brakes failed after landing, according to his lawyer.
This story is written and edited by the Global South World team, you can contact us here.
