BOARD OF DIRECTORS

BOARD RESOLUTION NO. 072/2024

SUBJECT: TREASURY MANAGEMENT – AUTHORIZE MONETIZATION OF MONETARY MATERIAL FROM THE c.10 CUT.

VIEWED:

• The Political Constitution of the State of February 7, 2009.
• Law No. 901 of November 28, 1986, on the Creation of a New Monetary Unit.
• Law No. 1670 of October 31, 1995, on the Central Bank of Bolivia (BCB) and its modifications.
• The BCB Statute, approved by Board Resolution No. 095/2022 of October 6, 2022.
• The Regulation on Monetization, Distribution and Destruction of Monetary Material and Destruction of Counterfeit Material, approved by Board Resolution No. 094/2018 of July 24, 2018 and its modifications.
• The Regulation on Exchange and Fractionation of Monetary Material of the BCB, approved by Board Resolution No. 067/2023 of May 2, 2023.
• Contract SANO - DLABS No. 140/2023 of August 8, 2023 and its modification.
• Report BCB-GTES-SAMM-DAMM-INF-2024-36 of June 6, 2024, issued by the Treasury Management (GTES).
• Legal Report BCB-GAL-SANO-DLBCI-INF-2024-208 of June 7, 2024, issued by 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. Within the framework

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of the State's economic policy, it is the function of the BCB to maintain the stability of the internal purchasing power of the currency, to contribute to economic and social development.

That numeral 4 of paragraph I of Article 328 of the fundamental norm establishes that it is an attribute of the BCB, in coordination with the economic policy determined by the Executive Branch, to authorize the issuance of currency.

That Article 1 of Law No. 901 of November 28, 1986, establishes the creation of the Boliviano as a new unit of the monetary system of the Plurinational State of Bolivia through banknotes and coins that the BCB will issue and circulate with the quality of legal and mandatory tender.

That Articles 1 and 3 of Law No. 1670 establish that the Issuing Entity is the sole monetary authority of the country, with administrative, technical and financial competence and specialized regulatory powers; it will formulate policies of general application in monetary, exchange and payment system matters, for the fulfillment of its object.

That Article 10 of the aforementioned Law provides that the BCB will exercise exclusively and inalienably the function of issuing the monetary unit of Bolivia called the "Boliviano", in the form of banknotes and metallic coins.

That Article 11 of the aforementioned Law provides that the banknotes and coins issued by the BCB are means of payment with legal tender throughout the territory of the Plurinational State of Bolivia, with unlimited liberatory power.

That Article 44 of Law No. 1670 provides that the highest authority of the BCB is its Board of Directors, 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.

That subsections a) and m) of Article 54 of the aforementioned Law determine that the BCB Board of Directors has the attribute to issue regulations and adopt general decisions that are necessary for the BCB to fulfill the functions, competencies and powers assigned to it by the Law, and to authorize and supervise the printing, issuance and destruction of banknotes and the minting and withdrawal of coins, within the norms of this Law.

That numerales 1) and 11) of Article 10 of the BCB Statute provide that the BCB Board of Directors has the attribute to approve general decisions and issue regulations that are necessary for the BCB to fulfill the functions, competencies and powers assigned to it by the Law, as well as, to approve the printing, issuance and destruction of Boliviano banknotes and coins, and those issued for commemorative and numismatic purposes as well as their denominations, dimensions, designs and colors, in accordance with Regulations when applicable.

That Article 24 of the aforementioned Statute provides that resolutions and decisions of the Board of Directors are adopted by a simple majority of votes of the members present in a meeting, except in cases where Law No. 1670 or this Statute require qualified majorities.

That Article 26 of the Statute states 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. 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 Articles 1 and 3 of the Regulation on Monetization, Distribution, Destruction of Monetary Material and Destruction of Counterfeit Material determine that its object is to regulate the monetization, distribution, demonetization, destruction of monetary material and destruction of counterfeit banknotes seized by Financial Intermediation Entities and sent to the BCB. Likewise, it establishes that the BCB Board of Directors, through an express Resolution, will authorize the monetization of monetary material based on the Reports from GTES and GAL, according to the issuance or storage requirements determined by GTES.

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That Article 2 of the aforementioned Regulation defines Monetization as a privative function of the BCB as the sole issuer of the Boliviano, through which nominal value is granted to Boliviano banknotes and coins for their circulation.

That Articles 4 and 5 of the aforementioned Regulation determine that the authorization for monetization will be recorded in a Minutes signed by a Director designated by the BCB Board of Directors, the General Manager, the Treasury Manager and the Deputy Manager of Monetary Material Operations; the Treasury Management will register the monetization of banknotes and coins, transferring accountingly the nominal value of each of the denominations from "Monetary Material in Warehouses" to the "Central Vault" account.

That in accordance with Contract SANO - DLABS No. 140/2023, signed between the BCB and the Company MINT OF FINLAND LTD. S.A., whose object is the acquisition of coins to cover the demand of financial intermediation entities and the general public, it establishes among other things, the provision of 68,045,000 pieces of c.10.

That Technical Report BCB-GTES-SAMM-DAMM-INF-2024-36, from GTES concludes that based on the recent evolution of the demand for c.10 coins, the current stock of this cut in the BCB Vaults would be insufficient to meet issuance requirements in the short term; in this sense, the monetization of coins of the cut indicated in the framework of Contract SANO – DLABS No. 140/2023 and its modification signed with the company MINT OF FINLAND LTDA. is required; which amounts to 18.9 million coins, equivalent to Bs 1.89 million.

That, Legal Report BCB-GAL-SANO-DLBCI-INF-2024-208, from GAL concludes that the request from GTES through the Technical Report on the monetization of 18,900,000 pieces of the c.10 cut equivalent to Bs 1,890,000, is legally appropriate by virtue of the legal provisions contained in the Political Constitution of the State, Articles 1 and 3 of Law No. 901, Law No. 1670 and the BCB Statute; likewise, in observance of what is provided in Articles 3 and 4 of the Regulation on Monetization, Distribution, Destruction of Monetary Material and Destruction of Counterfeit Material, it corresponds to the BCB Board of Directors to authorize the monetization of coins by a simple majority of votes of the members present, in accordance with paragraph I of Article 24 and Article 26 of the BCB Statute.

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BCB. Finally, in the exercise of the supervision attribute, it corresponds to the designation of one of its members to participate in the corresponding monetization act.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Authorize the monetization of coins of the c.10 cut, according to the following detail:

Cut	Contract	Batch	Quantity (Pieces)	Amount (Bs)
c.10	SANO-DLABS No. 140/2023	First Shipment	18,900,000	1,890,000

Article 2.- Designate Acting Director Gumercindo Hector Pino Guzmán to represent the Board of Directors and participate in the monetization act of the aforementioned material.

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

La Paz, June 11, 2024

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