Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 044/2017

SUBJECT: TREASURY MANAGEMENT – MODIFIES THE REGULATION ON THE ADMINISTRATION OF MONETARY MATERIAL.

VISTOS:

• The Political Constitution of the State of February 7, 2009.
• Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia.
• The Statute of the Central Bank of Bolivia approved by Board Resolution No. 128/2005 of October 21, 2005 and its modifications.
• The Regulation on the Administration of Monetary Material, approved by Board Resolution No. 020/2016 of February 2, 2016.
• The Report from the Treasury Management BCB-GTES-SAMM-DAMM-INF-2017-38 of March 31, 2017.
• The Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2017-69 of March 31, 2017.

CONSIDERING:

• That the Political Constitution of the State establishes in its article 328 that the attributions of the BCB, in coordination with the economic policy determined by the Executive Branch, in addition to those indicated by Law, are: to determine and execute monetary policy, execute exchange rate policy, regulate the payment system, authorize the issuance of currency, and administer international reserves.
• That pursuant to articles 1 and 3 of Law No. 1670, the BCB is the sole monetary and exchange rate authority of the country with administrative, technical, and financial competence and specialized normative powers of general application, being empowered to formulate policies in monetary, exchange rate, and payment system matters.
• That the aforementioned Law in its articles 10, 11, 13, and 54, subsections a), o), and m), establishes the functions of the BCB regarding the issuance of banknotes and metallic coins, as well as the attributions of the Board of Directors as the Highest Authority of the BCB, to authorize and supervise the printing, issuance, and destruction of monetary material, being empowered to dictate, modify, and interpret norms and adopt general decisions necessary for their compliance, without the need for any additional administrative act.
• That pursuant to article 30 of Law No. 1670, all financial intermediation and financial service entities, whose operation is authorized by the Superintendence of Banks and Financial Entities, are subject to the normative competence of the BCB, with respect to their relationship as the monetary, exchange rate, and payment system authority.
• That Article 38 subsection f) of the aforementioned Law of the Central Bank of Bolivia establishes that

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in addition to what is provided in previous articles, the BCB may carry out other new operations that are compatible with the object of the BCB.

• That article 67 of the Statute of the Central Bank of Bolivia establishes that the Treasury Operations Management is responsible for establishing requirements for the acquisition, distribution, destruction, and administration of monetary material and for carrying out the custody of securities.
• That the Treasury Management through Report BCB-GTES-SAMM-DAMM-INF-2017-38 recommends the modification of the Regulation on the Administration of Monetary Material with the objective of eliminating from the content of the tags the data of the person who prepared the package; the inclusion of sanctions for the intentional invalidation of banknotes, and the possibility of making deposits of fit banknotes of the Bs20 denomination between April 15 and July 15, 2017.
• That the Legal Affairs Management through Report BCB-GAL-SANO-DLBCI-INF-2017-69 concludes that the modifications proposed by GTES do not contravene current legal regulations and their drafting is based on criteria of updating and better control during the processing of monetary material deposited in the BCB by FIIs, and are therefore legally appropriate; being the competence of the Board of Directors of the Issuing Entity to consider their approval by two-thirds of the votes of all its members, in accordance with what is provided in subsection o) of article 54 of Law No. 1670 and numeral 29 of article 11 of the BCB Statute.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify all articles of the Regulation on the Administration of Monetary Material that contain the term Financial Entity, replacing this term with “Financial Intermediation Entity”.

Article 2.- Modify Chapter VIII, Additional Provisions of the Regulation on the Administration of Monetary Material with the following text:

IT SAYS:

CHAPTER VIII

ADDITIONAL PROVISIONS

Sole Article. In the case of unfit banknotes of Bs10 and Bs20 denominations, received until January 26, 2016, included in Report BCB-GTES-SAMM-DAMM-INF-2016-14 carried out by GTES, the BCB Board of Directors authorizes their direct destruction.

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IT MUST SAY:

“CHAPTER VIII

ADDITIONAL PROVISIONS

First. In the case of unfit banknotes of Bs10 and Bs20 denominations, received until January 26, 2016, included in Report BCB-GTES-SAMM-DAMM-INF-2016-14 carried out by GTES, the BCB Board of Directors authorizes their direct destruction.

Second (Deposits). FIIs may make deposits of fit banknotes of the Bs20 denomination, until July 15, 2017.”

Article 3.- This Board Resolution shall enter into force on April 11, 2017.

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

La Paz, April 4, 2017

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