Board Resolution No. 059/2011

BOARD RESOLUTION NO. 059/2011 SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVES CONDITIONS FOR THE SALE OF GOLD COINS.

HAVING REVIEWED: Law No. 1670 of October 31, 1995. The Statute of the Central Bank of Bolivia of October 21, 2005. Board Resolutions 144/2003 of December 16, 2003, 101/2006 of November 14, 2006, 020/2010 of February 2, 2010, and 101/2001 of August 31, 2010. The Report from the Monetary Operations Management BCB-GOM-STES-INF-2010-30 of May 6, 2011. The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2011-172 of May 12, 2011.

CONSIDERING: That Law No. 1670 in its Article 54, subsections a) and m), provides that the Board of Directors of the BCB is authorized to issue the rules and adopt the general decisions that may be necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by said Law; and to authorize and supervise the printing, issuance, and destruction of banknotes and the minting and withdrawal of coins within the norms of that Law.

That in accordance with the previous provision, Article 111, numeral 11) of the BCB Statute establishes as attributions of the BCB Board of Directors, those of approving the printing, issuance, and destruction of Boliviano banknotes and coins and those issued for commemorative and numismatic purposes, as well as denominations, dimensions, designs, and colors according to Regulations when applicable.

That Article 2 of Board Resolution No. 144/2003 authorizes the daily fixing of sale prices for gold commemorative coins and medals, according to the following formula: Price in Bs = Weight of the coin x gold quote x purchase exchange rate x 1.30.

That Board Resolution No. 101/2006 in its Article 1 maintains the conditions for the sale of gold commemorative coins and medals, fixed in Board Resolution No. 144/2003 of December 16, 2003.

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That Board Resolution No. 101/2010 modifies Article 2, the text of the coin price according to the following formula: Price in Bs = Weight of the coin x gold quote x purchase exchange rate x 1.05.

That the Monetary Operations Management in Report BCB-GOM-STES-INF-2010-30 establishes that with the implementation of Board Resolution No. 101/2010, the sale of gold coins has significantly increased in relation to previous years; however, the sale price of these coins does not cover the total portion of the value-added tax (VAT). Consequently, to avoid the generation of negative net profit that arises from applying the 5% gain, the GOM recommends increasing the margin to 15%, which will allow covering the VAT percentage.

That the Monetary Operations Management establishes that the calculation of the price of gold commemorative coins would be carried out based on the quote of the fine troy ounce of gold and the purchase exchange rate, considering the Board's suggestion.

That in Report BCB-GAL-SANO-INF-2011-172 it is established that the proposal to increase the profit margin to 15% in order to cover the VAT percentage is legally appropriate, being within the competence of the BCB Board of Directors to consider its approval by simple majority of votes of the members present at the respective meeting, in accordance with what is established in Article 24 of the Institution's Statute and under the authority of the attributions provided in Law No. 1670.

That the Board has the authority to fix the technical specifications and forms of commercialization of coins issued for commemorative or numismatic purposes.

THEREFORE, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:

Article 1.- Modify Article 2 of Board Resolution No. 101/2010 of August 31, 2010, according to the following text: SAYS: Article 2.- Authorize the daily fixing of sale prices for gold commemorative coins and medals, according to the following formula: Price in Bs = Weight of the coin x gold quote x purchase exchange rate x 1.05.

"SHOULD SAY:

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Article 2.- Authorize the daily fixing of sale prices for gold commemorative coins and medals, according to the following formula: Price in Bs = Weight of the coin x gold quote x purchase exchange rate x 1.15"

Article 2.- Repeal Board Resolution No. 101/2010 of August 31, 2010, and other provisions contrary to this Resolution, from its effective date.

Article 3.- This provision shall enter into force starting from May 18, 2011.

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

La Paz, May 17, 2011

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Marcelo Zabalaga Estrada

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Rolando Marín Ibáñez Hugo Dorado Araníbar

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Gustavo Blacutt Alcalá Rafael Boyán Téllez