Regulatory Alerts2013-04-19 | RESOLUCION DE DIRECTORIO Nº 038/2013Added · Updated
Board Resolution No. 038/2013
The Board of Directors of the Central Bank of Bolivia amends Article 6 of the Open Market Operations Regulation to authorize the Open Market Operations Committee to exceed weekly security supply limits defined by the Board when necessary, including utilizing excesses sent to the Money Market. The Committee President must provide written justification for such decisions at the next Board meeting, and any quarterly limit exceedances must be submitted to the Board for consideration. This modification enters into force on the date of its approval.
BOARD RESOLUTION NO. 038/2013 SUBJECT: MONETARY OPERATIONS MANAGEMENT - APPROVES MODIFICATIONS TO THE OPEN MARKET OPERATIONS REGULATION.
HAVING SEEN:
Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia, and its modifications.
The Statute of the Central Bank of Bolivia, approved by Board Resolution No. 128/2005 of October 21, 2005, and its modifications approved by Board Resolution No. 31/2006 of April 18, 2006, Board Resolution No. 21/2008 of February 26, 2008, and Board Resolution No. 106/2009 of September 8, 2009.
The Open Market Operations Regulation (OMA), approved by Board Resolution No. 127/2003 of November 11, 2003, and the modifications approved by Board Resolutions No. 017/2004, No. 070/2005, No. 108/2007, No. 130/2007, No. 118/2009, No. 094/2011, and No. 105/2011, of February 10, 2004, May 24, 2005, August 21, 2007, October 16, 2007, October 6, 2009, August 2, 2011, and August 23, 2011, respectively.
Act No. 015/2013 of the Extraordinary Meeting of the Board of Directors of the BCB of March 28, 2013.
The Technical Report from the Monetary Operations Management BCB-GOM-SOMA-INF-2013-14 of April 2, 2013.
The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2013-101 of April 2, 2013.
CONSIDERING:
That Article 6 of Law No. 1670 empowers the Central Bank of Bolivia to execute monetary policy and regulate the quantity of money and credit volume according to its monetary program, being able to issue, place, and acquire securities and carry out other open market operations for this purpose.
That Article 54, paragraph d) of Law No. 1670 and numeral 4) of Article 11 of the BCB Statute, empower the BCB Board of Directors to issue regulations for open market operations.
That Article 53 of the BCB Statute establishes that the attributes of the Open Market Operations Committee (COMA) must be defined by Regulation.
That the Board of Directors of the Central Bank of Bolivia in its Extraordinary Meeting of March 28, 2013 (Act No. 015/2013) approved expanding the supply of securities on the Money Market or by auction and ordered the modification of Article 6 of the Open Market Operations Regulation.
That the Report from the Monetary Operations Management, within the framework approved by the Board, recommends approving the modification of Article 6 of the Open Market Operations Regulation, with the aim that the COMA, if it deems it necessary, has the authority to expand the supply of securities above the guidelines approved by the Board.
That in the opinion of the Legal Affairs Management, the modification of Article 6 of the Open Market Operations Regulation carried out by the GOM is legally procedent, being the competence of the BCB Board of Directors to consider its approval by two-thirds of its total members.
THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA
RESOLVES:
Article 1.- Modify Article 6 of the Open Market Operations Regulation, which was modified by Board Resolution 11/2009 of October 6, 2009, in the following terms:
SAYS:
Article 6 (Application of OMA Policies).
- With the periodicity decided by the COMA, it will determine the securities to be traded, their amounts, rates or prices, trading modality, and other characteristics based on the analysis of the market liquidity situation and the compliance with monetary policy targets and OMA guidelines defined by the Board.
SHOULD SAY:
“Article 6 (Application of OMA Policies).
- With the periodicity decided by the COMA, it will determine the securities to be traded, their amounts, rates or prices, trading modality, and other characteristics based on the analysis of the market liquidity situation and the compliance with monetary policy targets and OMA guidelines defined by the Board.
- If it deems it necessary, the COMA may expand the weekly supply of securities above the guidelines approved by the Board, including excesses on the weekly supply of securities that may be generated by amounts sent to the money market.
The President of the COMA must inform in writing at the next Board meeting the reasons for that decision.
- Whenever the set of COMA actions is going to exceed the quarterly limit approved by the Board, the new limit must be submitted for consideration to this instance.”
Article 2. The modification established in Article 1 of this Resolution will enter into force from the date of its approval.
Article 3. The Presidency and the General Management are in charge of the execution and compliance of this Resolution.
La Paz, April 9, 2013
Marcelo Zabalaga Estrada
Gustavo Blacutt Alcalá Abraham Pérez Alandia
Hugo Dorado Araníbar Rafael Boyán Téllez
Rolando Marín Ibáñez
More like this from BCB
BCB published 6 documents in the last 30 days. We email you each new one the day it's published.