BOARD OF DIRECTORS

BOARD RESOLUTION NO. 065/2024

SUBJECT: INTERNATIONAL OPERATIONS DEPARTMENT – APPROVAL OF THE EXIT OF GOLD ACQUIRED IN THE DOMESTIC MARKET FROM THE NATIONAL CUSTOMS TERRITORY.

VIEWING:

• 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 Intended for the Strengthening of International Reserves.
• Supreme Decree No. 25870 of August 11, 2000, of the Regulation to the General Customs Law and its modifications.
• The Statute of the BCB approved through Board Resolution No. 095/2022 of October 6, 2022.
• The Regulation of the International Reserves Committee approved through Board Resolution No. 017/2023 of January 25, 2023.
• The Regulation for the Administration of International Reserves approved by Board Resolution No. 071/2023 of May 9, 2023 and its modifications.
• The Regulation for the Purchase of Gold in the Domestic Market Intended for the Strengthening of International Reserves, within the framework of Law No. 1503 of May 5, 2023, approved through Board Resolution No. 096/2023 of July 3, 2023 and its modifications.
• The Technical Report BCB-GOI-SRES-DNI-INF-2024-30 of May 23, 2024, issued by the International Operations Department (GOI).

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The Legal Report BCB-GAL-SANO-DLBCI-INF-2024-183 of May 24, 2024, issued by the Legal Affairs Department (GAL).

CONSIDERING:

That Article 328 of the Political Constitution of the State establishes, as one of the attributions of the Central Bank of Bolivia (BCB), in coordination with the economic policy determined by the Executive Branch, the administration of 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 Popular Property and Credit, 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 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 regulatory 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 International Reserves of the BCB 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 regulations 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) and c) of Article 54 of Law No. 1670 indicate the following attributions of the Board of Directors: Issue the rules and adopt the 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 reserves administration, and other policies and regulations corresponding to the BCB in accordance with Law No. 1670.

# BOARD OF DIRECTORS

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That Article 1 of said Law No. 1503 has the object of authorizing the BCB to purchase gold from the domestic market for the strengthening of International Reserves and to carry out financial operations with International Reserves in gold in international markets.

That Article 7 of Law No. 1503 provides that once the gold purchase process is concluded and total settlement has been made in the domestic market, the BCB may refine the gold abroad to obtain the quality of good delivery bars and, in accordance with regulations, regulate the exit from the national customs territory.

Article 9 of Law No. 1503 establishes that the BCB will carry out operations in international markets with gold reserves, being able to buy, invest, deposit in custody, use in hedging instruments, transform, and convert them into foreign currency, in order to optimize the liquidity and/or yield of International Reserves.

That Article 185 of Supreme Decree No. 25870 of August 11, 2000, of the Regulation to the General Customs Law and its modifications establishes that the exit from the national customs territory of international reserves, composed of convertible currencies and gold, by virtue of operations carried out by the BCB with international financial organizations and other institutions abroad, derived from its central banking functions or that are carried out to facilitate payment and credit operations, must be carried out in accordance with applicable legal provisions and prior presentation of the Resolution of the Ministry, currently the Ministry of Economy and Public Finance, that authorizes such operation.

That subsections 1) and 3) of Article 5 of the Statute of the BCB provide that its Board of Directors has regulatory competence to issue specialized rules 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.

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That subsections 1) and 6) of Article 10 of the Statute of the BCB provide that the Board of Directors has the attributions to approve general decisions and issue the rules that are necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by law, approve the policy and rules for the administration of International Reserves, as well as monitor their execution.

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 Statute of the BCB require qualified majorities.

That Article 26 of the Statute of the BCB stipulates 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, any draft Board Resolution must be motivated and justified by a technical report from the Department or Departments to which the subject matter of the Resolution corresponds and by a report from the Legal Affairs Department. These reports must be sent to the Board of Directors by the General Management with its recommendation.

Subsection 5) of Article 6 of the Regulation of the International Reserves Committee establishes, among others, as a Function of the Committee to propose the treatment that will be applied to International Reserve investments in case of immediate liquidity requirement, to recommend to the BCB.

That Paragraph VI of Article 11 of the Regulation for the Administration of International Reserves establishes that the exit from the national customs territory of locally purchased gold, to carry out investment operations, will be approved by Board Resolution.

That Article 25 of the Regulation for the Purchase of Gold in the Domestic Market Intended for the Strengthening of International Reserves, within the framework of Law No. 1503 of May 5, 2023, provides that the exit of gold from the national customs territory for the purpose of refining abroad will be approved by Board Resolution.

# BOARD OF DIRECTORS

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That Report BCB-GOI-SRES-DNI-INF-2024-30, recommends that the Board of Directors of the BCB approve the exit from the national customs territory of 340 gold bars acquired in the domestic market with an approximate weight of 2.96 tons, of which an estimated 2.79 tons of fine gold is derived, destined for Turkey for the purpose of refining abroad.

That Report BCB-GAL-SANO-DLBCI-INF-2024-183, concludes that the authorization of the exit from the national customs territory of the gold acquired in the domestic market for its refining and the carrying out of investment operations does not violate current regulations, therefore it recommends to the Board of Directors of the BCB the approval of the exit from the national customs territory of 340 gold bars acquired in the domestic market with an approximate weight of 2.96 tons, of which an estimated 2.79 tons of fine gold is derived, destined for Turkey for the purpose of refining abroad.

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

**Article 1.-** Approve the exit from the national customs territory of 340 gold bars acquired in the domestic market with an approximate weight, according to report BCB-GOI-SRES-DNI-INF-2024-30, of 2.96 tons, of which an estimated 2.79 tons of fine gold is derived, destined for Turkey for the purpose of refining abroad.

**Article 2.-** Authorize the investment operations of the gold resulting from the refining indicated in the preceding Article, in accordance with what is established in the Regulation for the Administration of International Reserves.

**Article 3.-** In accordance with Article 26 of the Regulation for the Purchase of Gold in the Domestic Market Intended for the Strengthening of International Reserves, within the framework of Law No. 1503 of May 5, 2023, the International Operations Department will process the Ministerial Resolution that authorizes the exit of the gold from the national customs territory before the Ministry of Economy and Public Finance.

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

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La Paz, May 28, 2024

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