Board Resolution No. 081/2015

BOARD RESOLUTION NO. 081/2015
SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT - APPROVES THE PURCHASE OF SPECIAL DRAWING RIGHTS AND THEIR SUBSEQUENT SALE.

HAVING REVIEWED:
The Political Constitution of the State approved by referendum on January 25, 2009, and published on February 7, 2009.
Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB).
The BCB Statute approved by Board Resolution No. 128/2005 of October 21, 2005, and its subsequent modifications.
The Regulation for the Administration of International Reserves approved by Board Resolution No. 119/2014.
The Report from the International Operations Management BCB-GOI-INF-2015-8 of May 21, 2015.
The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2015-210 of May 25, 2015.

CONSIDERING:
That the Political Constitution of the State establishes in its article 328 that it is an attribute of the BCB, in coordination with the economic policy determined by the Executive Branch, in addition to those specified by Law, to administer international reserves.

That in accordance with what is provided in article 16 of Law No. 1670, the Central Bank of Bolivia has the function of administering and managing international reserves, being able to invest them and deposit them in custody, as well as dispose of and pledge them, in the manner it considers most appropriate for the fulfillment of its object and functions and for their adequate safeguarding and security.

That the BCB Board of Directors, in its capacity as the highest authority of the Institution, is responsible for defining its policies, specialized regulations of general application, and internal norms, being empowered to issue rules and adopt general decisions that may be necessary for the fulfillment of the functions, competencies, and powers assigned by Law to the Issuing Entity, as established in Articles 44 and 54 subsection o) of Law No. 1670 and articles 9, 11, and 24 of the BCB Statute.

That the International Operations Management, through Report BCB-GOI-INF-2015-8, recommends to the Board of Directors of the Institution to authorize the purchase of Special Drawing Rights (SDRs) from the Bolivarian Republic of Venezuela for their subsequent sale.

That as stated in Report BCB-GAL-SANO-INF-2015-210, it is established that the proposal made by the International Operations Management through Report BCB-GOI-INF-2015-8 to authorize the purchase of 1,070,000,000 SDRs from Venezuela's holdings, for an approximate amount of USD 1,500,000,000 using resources from the Liquidity Portfolio, for their subsequent sale, falls within the provisions of subsection c) of article 15 of Law No. 1670.

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

Article 1.- Authorize the purchase of up to one billion seventy million Special Drawing Rights (SDR 1,070,000,000.-) from the Bolivarian Republic of Venezuela for subsequent sale.

Article 2.- The resources for the purchase of the SDRs will come from the Liquidity Portfolio. The resources obtained from the sale of the SDRs will be invested in the Liquidity Portfolio.

Article 3.- Any provision contrary to this Resolution is hereby repealed.

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

La Paz, May 26, 2015