BOARD OF DIRECTORS

BOARD RESOLUTION NO. 084/2024

SUBJECT: TREASURY MANAGEMENT – AUTHORIZE MONETIZATION OF CURRENCY MATERIAL FROM THE Bs10, Bs20, Bs50, Bs100, AND Bs200 DENOMINATIONS.

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 Currency Material and Destruction of Counterfeit Material, approved by Board Resolution No. 094/2018 of July 24, 2018, and its modifications.
• The BCB Regulation on Exchange and Fractionation of Currency Material, approved by Board Resolution No. 067/2023 of May 2, 2023.
• Contract SANO - DLABS No. 201/2023 of September 8, 2023, and its modification.
• Report BCB-GTES-SAMM-DAMM-INF-2024-58 of June 27, 2024, issued by the Treasury Management (GTES).
• Legal Report BCB-GAL-SANO-DLBCI-INF-2024-251 of July 1, 2024, issued by the Legal Affairs Management (GAL).

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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 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 Law No. 1670 provides that the BCB will exercise exclusively and non-delegably the function of issuing the monetary unit of Bolivia called the "Boliviano," in the form of banknotes and metallic coins.
• That Article 11 of Law No. 1670 provides that the banknotes and coins issued by the BCB are means of payment with legal tender status 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 for 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

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necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by 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 numerals 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 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, according to 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 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 Articles 1 and 3 of the Regulation on Monetization, Distribution, Destruction of Currency Material, and Destruction of Counterfeit Material determine that its object is to regulate the monetization, distribution, demonetization, destruction of currency material, and destruction of counterfeit banknotes seized by Financial Intermediation Entities and sent to the BCB. It also establishes that the BCB Board of Directors, through an express resolution, will authorize the monetization of currency material based on the Reports of the GTES and GAL, according to the issuance or storage requirements determined by the GTES.

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• That Article 2 of the cited 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 of monetization will be recorded in a Minutes document signed by a Director designated by the BCB Board of Directors, the General Manager, the Treasury Manager, and the Deputy Manager of Currency Material Operations. The Treasury Management will register the monetization of the banknotes and coins, accounting for the transfer of the nominal value of each of the denominations from the "Material in Warehouses" account to the "Central Vault" account.
• That the Technical Report BCB-GTES-SAMM-DAMM-INF-2024-58, from the GTES, concludes that based on the recent evolution of demand and distribution projections for currency material (MM) for the second half of 2024, the current stock of banknotes in the BCB Vaults, across all denominations, would be insufficient to meet issuance requirements in the short term. In this sense, with the purpose of satisfying the projected demand of Financial Intermediation Entities (EIF), responding to the population's fractionation needs, and, in general terms, meeting issuance requirements in accordance with current regulations, the monetization of banknotes across all denominations is required. For this effect, the currency material to be used will correspond to the banknote pieces from the NFB that were provided in the first, second, and third shipments under Contract SANO – DLABS No. 201/2023 and its modification signed with the company OBERTHUR FIDUCIAIRE SAS; which amount to 102,050,000 pieces, equivalent to Bs4,526,000,000.
• That the Legal Report BCB-GAL-SANO-DLBCI-INF-2024-251, from the GAL, concludes that the request of the GTES through Technical Report BCB-GTES-SAMM-DAMM-INF-2024-58, regarding the monetization of 102,050,000 pieces of the Bs10, Bs20, Bs50, Bs100, and Bs200 denominations equivalent to Bs4,526,000,000, 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 Currency Material, and Destruction of Counterfeit Material, it corresponds to the BCB Board of Directors to authorize the monetization of the banknotes in the Bs10, Bs20, Bs50, Bs100, and Bs200 denominations by a simple majority of votes of the members present, in accordance with paragraph I of

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Article 24 and Article 26 of the BCB Statute. Finally, in the exercise of the supervision attribute, the designation of one of its members to participate in the corresponding monetization act is required.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Authorize the monetization of banknotes in the Bs10, Bs20, Bs50, Bs100, and Bs200 denominations, according to the following detail:

Denomination	Quantity (Pieces)	Amount (Bs)
Bs200	2,250,000	450,000,000
Bs100	12,000,000	1,200,000,000
Bs50	44,700,000	2,235,000,000
Bs20	21,000,000	420,000,000
Bs10	22,100,000	221,000,000

Article 2.- Designate Acting Director Gumercindo Héctor 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, July 2, 2024

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