BOARD OF DIRECTORS

BOARD RESOLUTION NO. 048/2024

SUBJECT: TREASURY MANAGEMENT – AUTHORIZE MONETIZATION OF Bs2 DENOMINATION MONETARY MATERIAL.

VIEWED:

• The Political Constitution of the State of February 7, 2009.
• Law No. 901 of November 28, 1986, on the Creation of a New Monetary Unit.
• Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB).
• The BCB Statute, approved by Board Resolution No. 095/2022 of October 6, 2022.
• 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, and its modifications.
• Contract SANO - DLABS No. 300/2016 of September 12, 2016.
• Technical Report BCB-GTES-SAMM-DAMM-INF-2024-23 of April 18, 2024, issued by the Treasury Management (GTES).
• Legal Report BCB-GAL-SANO-DLBCI-INF-2024-137 of April 22, 2024, issued by the Legal Affairs Management (GAL).

CONSIDERING:

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

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That numeral 4 of paragraph I of Article 328 of the fundamental norm establishes that it is an attribute of the BCB, in coordination with the economic policy determined by the Executive Branch, to authorize the issuance of currency.

That Article 1 of Law No. 901 of November 28, 1986, establishes the creation of the Boliviano as a new unit of the monetary system of the Plurinational State of Bolivia through banknotes and coins that the BCB will issue and circulate with the quality of legal and compulsory tender.

That Articles 1 and 3 of Law No. 1670 establish that the Issuing Entity is the sole monetary authority of the country, with administrative, technical, and financial competence and specialized regulatory powers; it will formulate policies of general application in monetary, exchange, and payments system matters, for the fulfillment of its object.

That Article 10 of the aforementioned Law provides that the BCB will exercise exclusively and non-delegably the function of issuing the monetary unit of Bolivia named the "Boliviano," in the form of banknotes and metallic coins.

That Article 11 of the cited Law provides that the banknotes and coins issued by the BCB are means of payment with legal tender throughout the territory of the Plurinational State of Bolivia, with unlimited liberating power.

That Article 44 of Law No. 1670 provides that the highest authority of the BCB is its Board of Directors, responsible for defining its policies, specialized regulations of general application, and internal rules; as well as for establishing administrative, operational, and financial strategies of the BCB.

That subsections a) and m) of Article 54 of the aforementioned Law determine that the BCB Board of Directors has the attribute to issue regulations and adopt general decisions that may be necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by the Law, and to authorize and supervise the printing, issuance, and destruction of banknotes and the minting and withdrawal of coins, within the norms of this Law.

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That subsections 1) and 11) of Article 11 of the BCB Statute provide that the BCB Board of Directors has the attribute to approve general decisions and issue regulations that may be necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by the Law, as well as to approve the printing, issuance, and destruction of Boliviano banknotes and coins, and those issued for commemorative and numismatic purposes as well as their denominations, dimensions, designs, and colors, according to Regulations when applicable.

That Article 24 of the aforementioned Statute provides that resolutions and decisions of the Board of Directors are adopted by a simple majority of votes of the members present in a meeting, except in cases where Law No. 1670 or this Statute require qualified majorities.

That Article 26 of the Statute states that the Board of Directors pronounces itself on matters within its competence through Resolutions. It may also do so through decisions that will be expressly recorded in the Minutes. Every draft Board Resolution must be motivated and justified by a technical report from the Management or Managements to which the subject matter of the Resolution corresponds and by a report from the Legal Affairs Management. These reports must be submitted to the Board of Directors by the General Management with its recommendation.

That Article 2 of the Regulation on Monetization, Distribution, Destruction of Monetary Material, and Destruction of Counterfeit Material, approved by Board Resolution No. 094/2018 and its modifications, defines monetization as a privative function of the BCB as the sole issuer of the Boliviano, through which nominal value is granted to Boliviano banknotes and coins for their circulation.

That Article 3 of the Regulation on Monetization, Distribution, Destruction of Monetary Material, and Destruction of Counterfeit Material establishes that the BCB Board of Directors, through an express resolution, will authorize the monetization of monetary material based on reports from GTES and GAL, in function of the issuance or storage requirements determined by GTES.

That Articles 4 and 5 of the aforementioned Regulation determine that the authorization of monetization will be recorded in Minutes signed by a Director designated by the BCB Board of Directors, the General Manager, the Treasury Manager, and the Deputy Manager of Monetary Material Operations; the Treasury Management will register the monetization of banknotes and coins,

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transferring accountingly the nominal value of each of the denominations of "Monetary Material in Warehouses" to the "Central Vault" account.

That in accordance with Contract SANO - DLABS No. 300/2016, of September 12, 2016, signed between the BCB and the Company Mennica Polska S.A., whose object is the minting of coins to cover the demand of financial intermediation entities and the general public, and establishes among other things, the provision of 97 million pieces of Bs2.

That the Technical Report BCB-GTES-SAMM-DAMM-INF-2024-23, from GTES concludes that with the purpose of satisfying the demand for Bs2 monetary material from EIFs, responding to the population's fragmentation needs, and, in general terms, attending issuance requirements, in conformity with current regulations, the monetization of 37 million pieces of Bs2 denomination coins is required, equivalent to Bs74 million.

That, the Legal Report BCB-GAL-SANO-DLBCI-INF-2024-137, from GAL concludes that the request of GTES through Technical Report BCB-GTES-SAMM-DAMM-INF-2024-23, regarding the monetization of 37 million pieces of the Bs2 denomination equivalent to Bs74 million, is legally appropriate, recommending the BCB Board of Directors authorize the monetization.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Authorize the monetization of coins of the Bs2 denomination, according to the following detail:

Denomination	Batch	Quantity (in millions of pieces)	Amount (in millions of Bolivianos)
Bs2	Lots 6 and 7, Contract SANO - DLABS No. 300/2016	37	74

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Article 2.- Designate Director Gumercindo Héctor Pino Guzmán to represent the Board of Directors in the monetization act of the aforementioned material.

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

La Paz, April 23, 2024

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