BOARD OF DIRECTORS

BOARD RESOLUTION NO. 060/2024

SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT – MODIFY THE REGULATION ON GOLD PURCHASES IN THE INTERNAL MARKET DESTINED TO STRENGTHENING INTERNATIONAL RESERVES, UNDER LAW NO. 1503 OF MAY 5, 2023.

VISTOS (SEEING):

• The Political Constitution of the State, of February 7, 2009.
• 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 Destined to Strengthening International Reserves.
• The Statute of the BCB approved by Board Resolution No. 095/2022 of October 6, 2022.
• The Regulation on Gold Purchases in the Internal Market Destined to Strengthening International Reserves, under Law No. 1503 of May 5, 2023, approved by Board Resolution No. 096/2023 of July 3, 2023, and its modifications.
• Technical Report BCB-GOI-SRES-DOI-INF-2024-72 of May 3, 2024, issued by the International Operations Management (GOI).
• Legal Report BCB-GAL-SANO-DLBCI-INF-2024-159 of May 3, 2024, issued by the Legal Affairs Management (GAL).

CONSIDERING:

That Article 327 of the Political Constitution of the State determines that the Central Bank of Bolivia (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 paragraph 5) of paragraph I of Article 328 of the Political Constitution of the State,

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establishes that the BCB has the authority to Administer International Reserves.

That Article 1 of Law No. 1670, modified by Article 64, section A3, numeral 1) of Law No. 1864 of June 15, 1998, on Property and Popular 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 authority of the country, with administrative, technical, and financial competence and specialized normative powers of general application.

That Article 14 of Law No. 1670 establishes that the BCB will ensure the strengthening of International Reserves so as to allow the normal functioning of Bolivia's international payments.

That Article 15 of Law No. 1670 provides that the BCB's International Reserves are constituted, among others, by physical gold.

That Article 44 of Law No. 1670 establishes that the highest authority of the BCB is its Board of Directors, which is responsible for defining its policies, specialized norms of general application, and internal rules; as well as establishing administrative, operational, and financial strategies of the BCB, approving their respective short and medium-term programs. For the monitoring and oversight of their execution, it will have access to independent information, analysis, and audit services.

That subsections a), c), and o) of Article 54 of Law No. 1670 indicate the following attributions of the Board of Directors: Issue norms and adopt general decisions that are necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by Law; monitor the execution of monetary, exchange, credit, financial intermediation, international reserve administration, and other policies and regulations corresponding to the BCB in accordance with Law No. 1670; and 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 Articles 3, 4, and 5 of said Law No. 1503 authorize the BCB to buy gold as one more participant in the internal market of individual and legal persons, public and private, that participate in the commercialization of gold, these not being obliged to offer or sell gold production to the Issuing Entity, which will pay in national currency, taking as a base the price of the international gold quotation, under competitive conditions, and will establish the conditions, characteristics, periodicity, limits, and

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procedures for the acquisition of gold from the internal market, in accordance with regulations issued by the BCB.

That numerals 1) and 3) of Article 5 and Article 6 of the BCB Statute provide that its Board of Directors has normative 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. In this sense, the norms issued by the BCB will be approved by Board Resolution.

That numerals 1), 6), 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, 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 a 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 Article 1 of the Regulation on Gold Purchases in the Internal Market Destined to Strengthening International Reserves has the object of establishing the regulation of Law No. 1503 of May 5, 2023, and the requirements for the purchase of gold in any of its forms and states, in the internal market by the Central Bank of Bolivia (BCB), destined to strengthening International Reserves.

That Articles 2 and 3 of the Regulation on Gold Purchases in the Internal Market Destined to Strengthening International Reserves approved by Board Resolution No. 096/2023 establish the scope of application for all individual and legal persons,

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public and private, legally established, registered, and authorized by competent entities, voluntarily in the commercialization of gold to the BCB. Establishing as the purpose of the regulation the regulation and establishment of mechanisms and formalities for the purchase of gold within the internal market destined to strengthening International Reserves and defining the requirements to commercialize gold with the BCB.

That Articles 6 and 23 of the Regulation on Gold Purchases in the Internal Market Destined to Strengthening International Reserves establish that the purchase price is the product of the premium or discount applied to the International Market Quotation as established in Annex I; likewise, that the acquired gold bars will remain in custody in BCB vaults until their shipment for refining, must be clearly identified and registered in an inventory that will be administered by the International Operations Management in coordination with the Treasury Management.

That Technical Report BCB-GOI-SRES-DOI-INF-2024-72 concludes that the proposed modification to Annex I of the Regulation on Gold Purchases in the Internal Market Destined to Strengthening International Reserves is technically viable, as it would be framed within what is established in Law No. 1503, therefore recommending to the Board of Directors its approval.

That Legal Report BCB-GAL-SANO-DLBCI-INF-2024-159 concludes that the modification to Annex I of the Regulation on Gold Purchases in the Internal Market Destined to Strengthening International Reserves, proposed by the GOI in accordance with Report BCB-GOI-SRES-DOI-INF-2024-72 is legally appropriate, recommending to the BCB Board of Directors its approval as it does not contravene any legal provision.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify Annex I of the Regulation on Gold Purchases in the Internal Market Destined to Strengthening International Reserves, within the framework of Law No. 1503, which forms an integral part of this Resolution as an Annex.

Article 2.- This Resolution will enter into force from its publication.

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

La Paz, May 7, 2024

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

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ANNEX I - Calculation Methodology

1. Calculation Methodology for BCB Gold Purchases

a) Fine Weight

Fine Weight (g) = Net Weight (g) x Gold Purity (%)

b) Purchase Price (USD/oz)

Purchase Price (USD/oz)
= International Market Quotation (USD/oz)
× [1 + % premium or discount]

c) Purchase Price (Bs/g)

Purchase Price (Bs/g)
= [ (Purchase Price (USD/oz) / 31.1035 (g/oz)) × Exchange Rate (Bs/USD) ]

d) Market Sale Value

Market Sale Value (Bs) = Fine Weight (g) × Purchase Price (Bs/g)

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2. Percentage of Premium or Discount per Operation

Ranges by quantity of gold grams	% Premium or Discount*
Lower	Upper
500	2,000	-1.84%
2,001	3,000	-1.38%
3,001	4,000	0.00%
4,001	5,000	0.05%
5,001	6,000	0.15%
6,001	7,000	0.25%
7,001	8,000	0.35%
8,001	9,000	0.45%
9,001	10,000	0.55%
10,001	20,000	1.00%
20,001	30,000	1.50%
30,001	40,000	2.00%
40,001	50,000	2.50%
50,001	60,000	3.50%
60,001	70,000	4.50%
70,001	80,000	5.50%
80,001	90,000	6.50%
90,001	120,000	8.50%
120,001	And beyond	8.75%

*Applicable to the amount of fine gold.

3. Percentage of Premium or Discount for Periodic Sales

The seller may present a commitment note in accordance with Annex IV, committing to sell to the BCB a quantity equal to or greater than 50,001 grams within a maximum period of fifteen (15) calendar days. In case the commitment is fulfilled, the premium indicated according to the total quantity effectively delivered in the committed period will be applied, taking into account the international quotation on the last business day of the period, according to the range established in the Table of point 2.

The 90% advance and the settlement of the 10% of each operation carried out during the committed period will only be effected based on the international quotation, without including the premium in each delivery of gold sale to the BCB.

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In the event that the seller does not fulfill the sales commitment, on the last day of the committed period, the premium will be applied to each of the gold sales that had been made, according to the range established in the Table of point 2, as applicable.