BOARD OF DIRECTORS

BOARD RESOLUTION NO. 051/2024

SUBJECT:

INTERNATIONAL OPERATIONS MANAGEMENT – MONETARY OPERATIONS MANAGEMENT – AMEND THE FOREIGN EXCHANGE OPERATIONS REGULATIONS.

VIEWED:

The Political Constitution of the State of February 7, 2009 (CPE).
Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB) and its modifications.
Law No. 1503 of May 5, 2023, on the Purchase of Gold for the Strengthening of International Reserves.
The BCB Statute approved by Board Resolution No. 095/2022 of October 6, 2022.
The Foreign Exchange Operations Regulations, approved by Board Resolution No. 063/2013 of June 11, 2013, and its modifications.
Board Resolution No. 071/2023 of May 9, 2023, which approves the Regulations for the Administration of International Reserves.
The Open Market Operations Regulations, approved by Board Resolution No. 040/2024 of March 26, 2024.
The Technical Report BCB-GOI-SOEXT-DOCC-INF-2024-15 dated April 18, 2024, from the International Operations Management (GOI) and the Monetary Operations Management (GOM).
The Legal Report BCB-GAL-SANO-DLBCI-INF-2024-141 dated April 19, 2024, from the Legal Affairs Management (GAL).

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CONSIDERING:

That Article 326 of the Political Constitution of the State establishes that the State, through the Executive Branch, will determine the objectives of the country's monetary and exchange rate policy, in coordination with the Central Bank of Bolivia, and that public transactions in the country will be carried out in national currency.
That Article 327 of the Fundamental Law determines that the BCB is a public law institution, with legal personality and its own assets, which, within the framework of the State's economic policy, has the function of maintaining the stability of the internal purchasing power of the currency, to contribute to economic and social development.
That numeral 2) of paragraph I of Article 328 of the CPE establishes that the BCB has the authority to execute the exchange rate policy.
That Article 1 of Law No. 1670, modified by Article 64, section A3, numeral 1) of Law No. 1864 of June 15, 1998, on Popular Property and Credit, establishes that the BCB is a State institution, of public law, of an autarkic nature, of indefinite duration, with legal personality and its own assets and with legal domicile in the city of La Paz. It is the sole monetary and exchange rate authority of the country, with administrative, technical, and financial competence and specialized regulatory powers of general application.
That Articles 2, 3, and 4 of Law No. 1670 provide that the object of the BCB is to seek the stability of the internal purchasing power of the national currency, and it must formulate policies of general application in exchange rate matters and the payment system for the fulfillment of its object, and the Issuing Entity will take into account the Government's economic policy when formulating its policies.
That Article 14 of Law No. 1670 establishes that the BCB must ensure the strengthening of International Reserves so as to allow the normal functioning of Bolivia's international payments.
That Article 44 of Law No. 1670 establishes that the highest authority of the BCB is its

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Board of Directors, which is responsible for defining its policies, specialized regulations of general application, and internal rules.

That subsections a), c), and o) of Article 54 of Law No. 1670, indicate as attributions of the Board of Directors the following: a) Issue the norms and adopt the general decisions that are necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by Law; c) Monitor the execution of monetary, exchange rate, credit, financial intermediation, international reserve administration, and other policies and regulations corresponding to the BCB in accordance with the Law; and o) Approve, modify, and interpret the Statute and Regulations of the BCB, by two-thirds of the votes of all its members, without the need for any additional administrative act.
That the Sole Final Provision of Law No. 1503 establishes that within the framework of Articles 327 and 328 of the Political Constitution of the State, the BCB, with the objective of complying with its constitutional mandate, is authorized to apply what is provided in Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia and its modifications, which is sufficient for the development of its functions, without requiring greater provisions than said law.
That numerales 1) and 3) of Article 5 of the BCB Statute provide that its Board of Directors has regulatory competence to issue specialized norms in the fields assigned by Law and technical competence for the formulation of policies and the application of instruments that allow it to fulfill its object.
That numerales 1), 6), 12), and 30) of Article 10 of the BCB Statute provide that the Board of Directors has the attributions to approve general decisions and issue the norms that are necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by Law, approve the policy and norms for the administration of International Reserves, as well as monitor their execution, determine the exchange rate regime and the exchange rate policy, as well as approve, modify, and interpret the Statute and Regulations of the BCB, by two-thirds of the votes of all its members, without the need for an additional administrative act.
That paragraph I of Article 24 of said norm provides that resolutions and decisions of the Board of Directors are adopted by a simple majority of votes of its members present in

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meeting, except in cases where Law No. 1670 or the BCB Statute require qualified majorities.

That paragraphs I and II of Article 26 of the BCB Statute stipulate 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. Likewise, every draft Board Resolution must be motivated and justified by a technical report from the Management or Managements to which the matter subject to the Resolution corresponds, and by a report from the Legal Affairs Management. These reports must be sent to the Board of Directors by the General Management with its recommendation.
That the Foreign Exchange Operations Regulations and its modifications have the object of regulating the procedures for the determination of the Boliviano exchange rate and for the purchase and sale of US dollars by the BCB with financial entities and with the general public.
That the Technical Report BCB-GOI-SOEXT-DOCC-INF-2024-15 from the GOI and the GOM concludes that it is necessary to effect the modification to the Foreign Exchange Operations Regulations, through which it is provided that for operations of exchange of public values in foreign currency with Boliviano values with maintenance of value with respect to the US dollar (MVDOL), the BCB will use the official selling exchange rate for the payment at maturity of principal and interest in national currency, to strengthen International Reserves, recommending putting the proposal for modification of said Regulations before the Board of Directors of the BCB for approval.
That the Legal Report BCB-GAL-SANO-DLBCI-INF-2024-141 concludes that in accordance with Report BCB-GOI-SOEXT-DOCC-INF-2024-15, the proposal of the GOI and the GOM has as its object the inclusion of a Sixth Additional Provision in the Foreign Exchange Operations Regulations; which does not contravene any regulatory provision, and therefore is legally viable; recommending to the Board of Directors of the BCB to approve the modification of the Foreign Exchange Operations Regulations.

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THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA,

RESOLVES:

Article 1.- Incorporate the Sixth Additional Provision into the Foreign Exchange Operations Regulations approved by Board Resolution No. 063/2013 of June 11, 2013, and its modifications, with the following text:

"Sixth Additional Provision (Operations for the exchange of public values). For operations of exchange of public values in foreign currency with Boliviano values with maintenance of value with respect to the US dollar (MVDOL), the Central Bank of Bolivia may use the official selling exchange rate for the payment at maturity of principal and interest in national currency."

Article 2.- This Resolution shall enter into effect from its publication.

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

La Paz, April 26, 2024

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

Board Resolution No. 051/2024