Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 072/2018

SUBJECT: TREASURY MANAGEMENT – AUTHORIZES MONETIZATION OF Bs20 DENOMINATION BANKNOTES FROM THE FIRST FAMILY OF BANKNOTES OF THE PLURINATIONAL STATE OF BOLIVIA

VISTOS:

Law No. 901 of November 28, 1986, which creates the “Boliviano” as the legal and compulsory unit of currency.

Law No. 1670 of October 31, 1995.

The Statute of the Central Bank of Bolivia of October 21, 2005.

The Regulation on Monetization, Distribution, and Destruction of Monetary Material, approved by Board Resolution No. 021/2016 of February 2, 2016, and subsequent modifications.

The Contract for the Printing of the New Family of Boliviano Banknotes/First Family of Boliviano Banknotes of the Plurinational State of Bolivia SANO-DLABS No. 457/2016 of December 8, 2016, and the Amending Contract SANO DLABS No. 103/2017 of April 6, 2017.

The Report from the Monetary Operations Management BCB-GTES-SAMM-DAMM-INF-2018-74 of June 13, 2018.

The Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2018-161 of June 14, 2018.

CONSIDERING:

That Article 1 of Law No. 901 creates the Boliviano as the unit of the State's monetary system, through banknotes and coins that the Central Bank of Bolivia will issue and circulate as legal tender, starting from January 1, 1987.

That according to Article 10 of Law No. 1670, the Central Bank of Bolivia exercises exclusively and non-delegably the function of issuing the monetary unit of Bolivia, in the form of banknotes and metallic coins.

That it is an attribution of the Board of Directors according to Article 54, subsection m) of Law No. 1670 and numeral 11 of Article 11 of the Statute, to authorize and supervise the issuance of banknotes and coins.

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That Article 3 of the Regulation on Monetization, Distribution, and Destruction of Monetary Material, establishes that it is the faculty of the Board of Directors of the BCB to authorize the monetization of monetary material based on reports from the Treasury Management (GTES) and Legal Affairs Management, in accordance with the issuance or storage requirements determined by GTES.

That in conformity with Contract SANO-DLABS No. 457/2016 and Amending Contract SANO DLABS No. 103/2017 signed with the company Oberthur Fiduciaire S.A.S., the Central Bank of Bolivia received the first and second shipments of banknotes of the First Family of Banknotes of the Plurinational State of Bolivia of the Bs20 denomination.

That Report BCB-GTES-SAMM-DAMM-INF-2018-74 establishes the need to monetize 26.6 million pieces of banknotes of the Bs20 denomination from the First Family of Banknotes of the Plurinational State of Bolivia.

That in the opinion of Legal Affairs Management according to Report BCB-GAL-SANO-DLBCI-INF-2018-161, the request for monetization of Bs20 denomination banknotes made by GTES is legally appropriate as it does not contravene the current legal framework, being the competence of the Board of Directors of the Issuing Entity to authorize it by simple majority of votes of the members present at the respective meeting, in accordance with what is established in Article 24 of the BCB Statute and by virtue of the provisions contained in Law No. 1670.

THEREFORE

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Authorize the monetization of banknotes of the Bs20 denomination from the First Family of Banknotes of the Plurinational State of Bolivia, according to the following detail:

DENOMINATION	NO. OF PIECES	VALUE IN Bs.
20	26,600,000	532,000,000.-
TOTAL	26,600,000	532,000,000.-

Article 2.- Designate Director Ronald Polo Rivero to participate on behalf of the Board of Directors in the monetization act of the aforementioned material.

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

La Paz, June 19, 2018

Pablo Ramos Sánchez Abraham Pérez Alandia Gabriel Herbas Camacho Luis Baudoin Olea Ronald Polo Rivero Sergio Velarde Vera