Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 051/2016

SUBJECT: TREASURY MANAGEMENT – REGULATION FOR THE SALE OF UNITED STATES DOLLARS THROUGH BCB TREASURY COUNTERS.

VISTOS:

• The Political Constitution of the State promulgated on February 7, 2009.
• Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB).
• BCB Board Resolution No. 063/2013 of June 11, 2013, on the Foreign Exchange Operations Regulation.
• Board Resolution No. 128/2005 of October 21, 2005, on the Statute of the Central Bank of Bolivia and its modifications.
• Reports from the Treasury Management BCB-GTES-SAMM-DAMM-INF-2016-33 and BCB-GTES-SAMM-DAMM-INF-2016-34 of March 15, 2016.
• Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2016-57 of March 18, 2016.

CONSIDERING:

• That the Political Constitution of the Plurinational State of Bolivia, in its Article 328, establishes that it is an attribute of the Central Bank of Bolivia to execute foreign exchange policy in coordination with the economic policy determined by the Executive Branch.
• That Law No. 1670 in Chapter III, Article 19, determines that the Central Bank of Bolivia will establish the exchange regime and execute foreign exchange policy, regulating the conversion of the Boliviano in relation to the currencies of other countries and the procedures for determining the exchange rates of the national currency.
• That BCB Board Resolution No. 063/2013 on the Foreign Exchange Operations Regulation, in its Article 21, determines that entities supervised by the Financial System Supervision Authority and Exchange Houses will sell United States dollars to their clients and users at an exchange rate no greater than one (1) cent of the Boliviano of the official selling exchange rate of the BCB in effect on the date of each operation.
• That BCB Board Resolution No. 128/2005 (modifications R.D. 058/2015 and R.D. 010/2016) on the Statute of the Central Bank of Bolivia, in Chapter VII, Article 52, establishes that among the functions of the Monetary and Exchange Policy Committee (COPOMYC) is to propose to the Board measures conducive to the fulfillment of the monetary program and modifications to foreign exchange policy.
• That the Treasury Management, through Report BCB-GTES-SAMM-DAMM-INF-2016-33, recommends updating the Regulation and procedure for the sale of dollars at BCB Treasury counters, and additionally suggests that the Monetary and Exchange Policy Committee (COPOMYC) be the body that determines until when the BCB will continue selling dollars at its counters.
• That in Report BCB-GAL-SANO-DLBCI-INF-2016-57, Legal Affairs Management concludes that within the framework of what is stated in the Reports from Treasury Management BCB-GTES-SAMM-DAMM-INF-2016-33 and BCB-GTES-SAMM-DAMM-INF-2016-34, the modification of the Regulation for the Sale of United States Dollars through BCB Counters and/or Financial Intermediation Entities with Majority State Participation is legally appropriate, as it does not contravene the current legal framework, being the competence of the BCB Board to consider its approval by two-thirds of the votes of all its members, in accordance with what is established in subsection o) of Article 54 of Law No. 1670.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the Regulation for the Sale of Dollars through BCB counters, which is attached as an Annex and forms part of this Board Resolution, which will enter into force on the day of its approval.

Article 2.- The Presidency and General Management are charged with the compliance of this Resolution.

La Paz, March 22, 2016

Marcelo Zabalaga Estrada

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Sergio Velarde Vera
Ronald Polo Rivero
Abraham Pérez Alandia
Reynaldo Yujra Segales
Alvaro Rodríguez Rojas

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ANNEX

REGULATION FOR THE SALE OF UNITED STATES DOLLARS THROUGH BCB TREASURY COUNTERS

CHAPTER I

GENERAL PROVISIONS

Article 1. (Object). This Regulation aims to regulate the procedure applicable to the sale of United States dollars through BCB counters. The suspension and new authorizations for the sale of United States dollars through BCB counters will be determined by the Monetary and Exchange Policy Committee of the BCB, a decision that will be communicated to the BCB Board of Directors.

Article 2. (Scope of Application). The provisions contained in this Regulation apply to operations for the sale of United States dollars through BCB counters.

CHAPTER II

PROCEDURE FOR THE SALE OF UNITED STATES DOLLARS THROUGH BCB COUNTERS

Article 3. (Applicable Exchange Rate). Any sale of United States dollars carried out by the BCB through its own counters will be effected at the official selling exchange rate in effect on the date of each operation.

Article 4. (Information Registration). For each sale operation of United States dollars, the buyer must present their Identity Document and a photocopy. The cashier will register the following information:

For Natural Persons

• First and last names
• Date of birth
• Nationality
• Number and place of issuance of the Identity Document (Identity Card, RUN or Passport)
• Marital Status
• Home address
• Profession
• Main economic activity or occupation
• Office/home/mobile phone numbers
• Source of Funds*

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• Purpose of the Transaction*

When the buyer acts on behalf of a legal entity, they must present a Specific, Broad, and Sufficient Power of Attorney granted by said entity. Additionally, the cashier will register the following information:

For Legal Entities

• Business name
• Main activity
• Tax Identification Number
• Address of the main office and branches
• Phone numbers
• Source of Funds*
• Purpose of the Transaction*

The information marked with an asterisk will be filled out for sales equal to or greater than $3,000 (Three Thousand 00/100 United States dollars) or in cases where BCB Risk Management determines.

Article 5. (Delivery and Receipt of Currency). The cashier will receive in national currency the amount equivalent to the quantity of dollars required and will deliver to the interested party the quantity of United States dollars required, at the official selling exchange rate.

Article 6. (Treasury Receipt). As proof of the transaction carried out, the cashier will deliver to the interested party the respective Treasury Receipt duly signed.

Article 7. (Procedures Applicable to the Sale of United States Dollars). The Treasury Management will prepare the respective Internal Procedure Manuals for approval by General Management.

CHAPTER III

REMITTAL OF INFORMATION TO THE UIF

Article 8. (Information to the Financial Investigation Unit). The BCB and the Entity will remit to the UIF the information on the sale operations of United States dollars that have been carried out, within the framework of what is required by said Institution.

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