Rodrigo Paz took office in November 2025 after defeating a rival in the presidential runoff, ending two decades of Movement for Socialism (MAS) dominance. His center-right administration inherited severe economic strains, including fuel shortages and fiscal imbalances, and has pursued austerity measures and subsidy reforms. These policies triggered widespread protests and road blockades starting in late April 2026, with demonstrators demanding his resignation amid reports of violence and casualties. Regional elections in March–April 2026 delivered sharp setbacks, limiting his alliance to just two of nine governorships. Government responses have included salary reductions for officials, efforts to enable military deployment, and reaffirmed U.S. diplomatic backing. Ongoing unrest, coalition stability, and any legislative or constitutional moves to address the crisis remain the central variables for traders assessing the timing of a potential exit.