BOARD

BOARD RESOLUTION NO. 010/2023

SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT – MONETARY OPERATIONS MANAGEMENT – AMEND THE FOREIGN EXCHANGE OPERATIONS REGULATION.

VISTOS:

The Political Constitution of the State of February 7, 2009.

Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB) and its modifications.

Law No. 1976 of April 30, 1999, which approves Bolivia's adherence to the International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families, Adopted by the General Assembly in its resolution 45/158, of December 18, 1990.

The BCB Statute approved by Board Resolution No. 095/2022 of October 6, 2022 and its modifications.

The Foreign Exchange Operations Regulation approved by Board Resolution No. 063/2013 of June 11, 2013.

The Regulation for the Transfer of Family Remittances, approved by Board Resolution No. 118/2021 of October 12, 2021.

The Technical Report from the Monetary Operations Management (GOM), International Operations Management (GOI), and Economic Policy Advisory (APEC) and BCB-GOM-SOMA-INF-2023-5 of January 9, 2023.

The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2023-5 of January 9, 2023.

CONSIDERING:

That Article 327 of the Political Constitution of the State determines that the BCB is a public law institution, with legal personality and its own assets, which, within the framework of the State's economic policy, has the function of maintaining the stability of the internal purchasing power of the currency, to contribute to economic and social development.

That paragraph I, numeral 2, of Article 328 of the Political Constitution of the State establishes that the BCB has the authority to execute exchange rate policy.

That Article 1 of Law No. 1670 establishes that the BCB is a State institution, of public law, autarkic in nature, of indefinite duration, with legal personality and its own assets and with legal domicile in the city of La Paz. It is the sole monetary and exchange rate authority of the country, with administrative, technical, and financial competence and specialized normative powers of general application.

That Article 3 of Law No. 1670 provides that the BCB will formulate policies of general application in the exchange rate matter for the fulfillment of its object.

That Law No. 1670 in its Article 19 provides that the BCB will execute exchange rate policy, regulating the conversion of the Boliviano in relation to the currencies of other countries and the procedures to determine the exchange rates of the national currency.

That Article 44 of Law No. 1670 establishes that the highest authority of the BCB is its Board of Directors, which is responsible for defining its policies, specialized norms of general application, and internal rules.

That subsections a), c), and o) of Article 54 of Law No. 1670 indicate as attributions of the Board of Directors the following: a) Issue the norms and adopt the general decisions that would be necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by Law; and o) Approve, modify, and interpret the Statute and Regulations of the BCB, by two-thirds of the votes of all its members, without the need for any additional administrative act.

That Law No. 1976 of April 30, 1999, approves Bolivia's adherence to the International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families, adopted by the United Nations General Assembly on December 18, 1990.

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That numeral 1) of Article 10 of the BCB Statute provides that the Board of Directors has the faculty to approve general decisions and issue the norms that would be necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by Law.

That in virtue of the attributions conferred by numeral 12) of Article 10 of the BCB Statute, the BCB Board of Directors is authorized to determine the exchange rate regime and exchange rate policy.

That numeral 30) of the cited Article 10 of the BCB Statute states that the Board of Directors may approve, modify, and interpret the Statute and Regulations of the BCB, by two-thirds of the votes of all its members, without the need for an additional administrative act.

That the Foreign Exchange Operations Regulation governs the procedures for the determination of the Boliviano exchange rate and for the purchase and sale of US dollars by the BCB with financial entities and with the general public.

That the Regulation for the Transfer of Family Remittances has as its object to regulate the operations of Transfer of Family Remittances that enter or leave Bolivian territory. Likewise, within the framework of current regulations, it establishes that the BCB constitutes itself as the regulator of the national payments system and will carry out supervision of the Transfer of Family Remittances.

That the International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families issued criteria to guarantee the rights of migrant workers and their families.

That the Technical Report from GOM, GOI, and APEC through report BCB-GOM-SOMA-INF-2023-5 concludes that the issuance of the BCB Remesa Bond in USD is a measure that will benefit all natural persons who receive family remittances from abroad, recommending to the BCB Board of Directors its approval.

That the GAL through report BCB-GAL-SANO-INF-2022-5 concludes that the proposal to modify the Foreign Exchange Operations Regulation for the issuance of the BCB Remesa bond does not contravene any regulatory provision, therefore it is legally procedent, therefore recommending to the BCB Board of Directors its approval.

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THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1. Incorporate a Single Additional Provision in the Foreign Exchange Operations Regulation, approved by Board Resolution 063/2013 of June 11, 2013, with the following text:

"Single Additional Provision.- In the framework of Law No. 1976 of April 30, 1999 and at the request of the natural person holder of the "BCB Remesa" bond, the BCB may purchase US dollars (USD) equivalent to their redemption value and/or at maturity, at the official selling exchange rate."

Article 3. This Resolution will enter into force from its publication.

Article 4. The Presidency and the General Management are charged with the compliance of this Resolution.

La Paz, January 10, 2023

SIGNED. ROGER EDWIN ROJAS ULO, Oscar Ferrufino Morro, Gabriel Herbas Camacho, Gumercindo Héctor Pino Guzmán, Diego Alejandro Pérez Cueto Eulert.