Central Bank of Bolivia

Board of Directors

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BOARD RESOLUTION NO. 016/2019

SUBJECT: TREASURY MANAGEMENT – AUTHORIZES MONETIZATION OF Bs0.20 COINS AND Bs50 BANKNOTES.

VIEWED:

• Law No. 901 of November 28, 1986, which creates the "Boliviano" as the legal and mandatory unit of currency.
• Law No. 1670 of October 31, 1995.
• The Statute of the Central Bank of Bolivia of October 21, 2005.
• The Regulation on Monetization, Distribution, and Destruction of Monetary Material and Destruction of Counterfeit Material, approved by Board Resolution No. 094/2018 of July 24, 2018.
• The Contracts for the minting of coins SANO-DLABS No. 131/2016 of April 6, 2016, and for the printing of the New Family of Boliviano Banknotes/First Family of Boliviano Banknotes of the Plurinational State of Bolivia SANO-DLABS No. 457/2016 of December 8, 2016, and the Amending Contract SANO DLABS No. 103/2017 of April 6, 2017.
• The Report from the Treasury Management BCB-GTES-SAMM-DAMM-INF-2019-27 of February 14, 2019.
• The Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2019-24 of February 15, 2019.

CONSIDERING:

• That Article 1 of Law No. 901 creates the Boliviano as the unit of the State's monetary system, through banknotes and coins that the Central Bank of Bolivia will issue and circulate as legal tender, starting January 1, 1987.
• That according to Article 10 of Law No. 1670, the Central Bank of Bolivia exercises exclusively and non-delegably the function of issuing Bolivia's monetary unit, in the form of banknotes and metallic coins.
• That it is an attribution of the Board of Directors according to Article 54, subsection m) of Law No. 1670 and numeral 11 of Article 11 of the Statute, to authorize and supervise the issuance of banknotes and coins.
• That Article 3 of the Regulation on Monetization, Distribution, and Destruction of Monetary Material and Destruction of Counterfeit Material establishes that it is the faculty of the BCB Board of Directors to authorize the monetization of monetary material based on reports from the Treasury Management (GTES) and the Legal Affairs Management, in accordance with the issuance or storage requirements determined by the GTES.
• That in accordance with Contract SANO-DLABS No. 131/2016 for the provision of coins, the Central Bank of Bolivia received three lots of coins that included the delivery of 46 million pieces of the Bs1 denomination, 15 million pieces of the Bs0.50 denomination, and 27.76 million pieces of the Bs0.20 denomination.
• That in accordance with Contract SANO-DLABS No. 457/2016 and the Amending Contract SANO DLABS No. 103/2017 for the provision of banknotes of the New Family, the Central Bank of Bolivia received the fourth shipment of banknotes of the First Family of Banknotes of the Plurinational State of Bolivia, which included the delivery of 31 million pieces of the Bs50 denomination.
• That Report BCB-GTES-SAMM-DAMM-INF-2019-27 establishes the need to monetize 88 million pieces of the Bs0.20 denomination, equivalent to Bs17.6 million (Seventeen million six hundred thousand 00/100 Bolivianos) and 26 million pieces of banknotes of the Bs50 denomination of the First Family of Banknotes of the Plurinational State of Bolivia, equivalent to Bs1.3 billion (One thousand three hundred million 00/100 Bolivianos).
• That in the opinion of the Legal Affairs Management according to Report BCB-GAL-SANO-DLBCI-INF-2019-24, the request for monetization of coins and banknotes of the Bs0.20 and Bs50 denominations made by the GTES is legally appropriate as it does not contravene the current legal framework, being within the competence of the Issuing Entity's Board of Directors to authorize it by simple majority of votes of the members present at the respective meeting, in accordance with what is established in Article 24 of the BCB Statute and by virtue of the provisions contained in Law No. 1670.

THEREFORE

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Authorize the monetization of Bs0.20 coins and Bs50 banknotes of the First Family of Banknotes of the Plurinational State of Bolivia, according to the following detail:

DENOMINATION	NO. OF PIECES	VALUE IN Bs.
0.20	88,000,000	17,600,000.-
50	26,000,000	1,300,000,000.-
TOTAL	114,000,000	1,317,600,000.-

Article 2.- Designate Director Ronald Polo Rivero to represent the Board of Directors in the monetization ceremony of the aforementioned material.

Article 3.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, February 19, 2019

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Pablo Ramos Sánchez
Gabriel Herbas Camacho
Sergio Velarde Vera
Abraham Pérez Alandia
Ronald Polo Rivero
Luis Baudoin Olea