BOARD OF DIRECTORS

BOARD RESOLUTION NO. 063/2023

SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT – ECONOMIC POLICY ADVISORY – MODIFICATION OF THE FOREIGN EXCHANGE OPERATIONS REGULATION.

VIEWED:

• 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.
• The BCB Statute approved by Board Resolution No. 095/2022 of October 6, 2022.
• The Foreign Exchange Operations Regulation approved by Board Resolution No. 063/2013 of June 11, 2013 and its modifications.
• Technical Report BCB-APEC-SADBC-INF-2023-14 of April 10, 2023 from the Economic Policy Advisory (APEC) and the International Operations Management (GOI).
• Legal Report BCB-GAL-SANO-INF-2023-123 of April 10, 2023 from the Legal Affairs Management (GAL).

CONSIDERING:

That Article 327 of the Political Constitution of the State 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 Political Constitution of the State establishes that the BCB has the authority to execute exchange rate policy.

That Article 1 of Law No. 1670 establishes that the BCB is a State institution, of public law, of an autarkic nature, of indefinite duration, with its own legal personality and assets and with its 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 normative faculties of general application.

That Article 3 of Law No. 1670 provides that the BCB will formulate policies of general application in the exchange rate matter for the fulfillment of its object.

That Article 19 of Law No. 1670 provides that the BCB will execute the exchange rate policy, regulating the conversion of the Boliviano in relation to the currencies of other countries and the procedures to determine the exchange rates of the national currency.

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.

That subsections a), c), and o) of Article 54 of Law No. 1670 indicate the following as attributions of the Board of Directors: a) Issue the norms and adopt the general decisions that would be necessary for the BCB to fulfill the functions, competencies, and faculties assigned to it by the Law; c) Monitor the execution of monetary, exchange rate, credit, financial intermediation, international reserves 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 numeral 1) of Article 10 of the BCB Statute provides that the Board of Directors has the faculty to approve general decisions and issue the norms that would be necessary for the BCB to fulfill the functions, competencies, and faculties assigned to it by the Law.

That, in virtue of the attributions conferred by numeral 12) of Article 10 of the BCB Statute, the BCB Board of Directors is authorized to determine the exchange rate regime and exchange rate policy.

That numeral 30) of the cited Article 10 of the BCB Statute states that the Board of Directors may 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 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 this Statute require qualified majorities.

That paragraphs I and II of Article 26 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 resolution of the Board of Directors must be motivated and justified by a technical report from the Management or Managements to whom the subject matter of 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 Regulation governs 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 Technical Report BCB-APEC-SADBC-INF-2023-14 from the APEC and GOI concludes that to maintain adequate liquidity levels, it is necessary to modify the Foreign Exchange Operations Regulation approved by Board Resolution No. 063/2013 of June 11, 2013, so that Financial Intermediation Entities (EIFs) can sell to the BCB their resources in foreign exchange (ME) coming from both their excess legal reserve requirement and their resources in the different Funds constituted in the BCB, at a competitive exchange rate. In this sense, it puts before the BCB Board of Directors and recommends approving the modification to said Regulation.

That Report BCB-GAL-SANO-DLBCI-INF-2023-123 concludes that in accordance with Report BCB-APEC-SADBC-INF-2023-14, the proposal to modify the Foreign Exchange Operations Regulation does not contravene any regulatory provision; therefore, it is legally appropriate, recommending to the BCB Board of Directors its approval.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1. Incorporate Additional Provision Fourth into the Foreign Exchange Operations Regulation approved by Board Resolution No. 063/2013 of June 11, 2013, modified by Board Resolutions 010/2023 of January 10, 2023 and No. 025/2023 of February 2, 2023, with the following text:

“Additional Provision Fourth (Sale of Foreign Exchange by Financial Intermediation Entities to the BCB). Financial Intermediation Entities may sell to the BCB their resources in US dollars (USD), constituted in the Funds: for Credits destined to the Productive Sector and Social Interest Housing II (Fund CPVIS II), for Credits destined to the Productive Sector and Social Interest Housing III (Fund CPVIS III), for Credits Destined to the Productive Sector (Fund CPR0), and for Incentive for the Use of Electrical and Renewable Energy (FIUSEER), which are not guaranteeing liquidity loans in accordance with what is established in the BCB Legal Reserve Regulation, at the official selling exchange rate.”

Article 2. This Resolution shall enter into force as of April 17, 2023.

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

---

La Paz, April 12, 2023

SIGNED. OSCAR FERRUFINO MORRO, Gabriel Herbas Camacho, Gumercindo Héctor Pino Guzmán, Diego Alejandro Pérez Cueto Eulert.