BOB (Bolivian Boliviano)

AAA

DEFINITION of 'BOB (Bolivian Boliviano)'

The currency abbreviation or currency symbol for the Bolivian boliviano (BOB), the currency of Bolivia. The Bolivian boliviano is made up of 100 centavos. Although the currency has changed many times, the name has been used to represent the Bolivian currency unit since 1864.

INVESTOPEDIA EXPLAINS 'BOB (Bolivian Boliviano)'

When first introduced in 1864, the boliviano was made equivalent to half a Bolivian scudo (the former national currency). After its introduction, it was pegged at 5 French francs to 1 boliviano until 1908, when it was put on the gold standard and pegged at 12.5 bolivianos to 1 British pound (GBP). From 1908 to 1962 the currency suffered a series of serious devaluations, and in 1963 it was replaced by the peso boliviano (BOP) at a rate of 1,000 to 1.

Many more years of rampant inflation and currency devaluation continued, forcing the nation to once again replace its currency. In 1987, BOP was replaced with the current boliviano (BOB), at a rate of 1 million to 1, making it equivalent to 1 U.S. dollar. Since this time, BOB has been allowed to float freely against other currencies.

RELATED TERMS
  1. Currency

    A generally accepted form of money, including coins and paper ...
  2. Forex - FX

    The market in which currencies are traded. The forex market is ...
  3. Quote Currency

    The second currency quoted in a currency pair in forex. In a ...
  4. Base Currency

    The first currency quoted in a currency pair on forex. It is ...
  5. Currency Pair

    The quotation and pricing structure of the currencies traded ...
  6. Forex Futures

    An exchange-traded contract to buy or sell a specified amount ...
Related Articles
  1. Currency Exchange: Floating Rate Vs. ...
    Forex Education

    Currency Exchange: Floating Rate Vs. ...

  2. Top 7 Questions About Currency Trading ...
    Forex Education

    Top 7 Questions About Currency Trading ...

  3. 8 Basic Forex Market Concepts
    Forex Education

    8 Basic Forex Market Concepts

  4. Dollarization Explained
    Forex Education

    Dollarization Explained

comments powered by Disqus
Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
Trading Center