BOARD OF DIRECTORS

BOARD RESOLUTION NO. 085/2024

SUBJECT:

MONETARY OPERATIONS MANAGEMENT - INTERNATIONAL OPERATIONS MANAGEMENT – MODIFY THE FOREIGN EXCHANGE OPERATIONS REGULATIONS.

VIEWED:

• 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 to strengthen International Reserves.
• The BCB Statute approved by Board Resolution No. 095/2022 of October 6, 2022.
• The Foreign Exchange Operations Regulations, approved by Board Resolution No. 063/2013 of June 11, 2013, and its modifications.
• Technical Report BCB-GOM-SOMA-INF-2024-117 dated July 1, 2024, from the Monetary Operations Management (GOM) and International Operations Management (GOI).
• Legal Report BCB-GAL-SANO-DLBCI-INF-2024-256 dated July 1, 2024, from the Legal Affairs Management (GAL).

CONSIDERING:

That Article 326 of the Political Constitution of the State establishes that the State, through the Executive Branch, will determine the objectives of the country's monetary and exchange policy, in coordination with the Central Bank of Bolivia, and that public transactions in the country will be carried out in national currency.

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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, which, within the framework of the State's economic policy, has the function of maintaining the stability of the internal purchasing power of the currency, to contribute to economic and social development.

That item 2) of paragraph I of Article 328 of the CPE establishes that the BCB has the authority to execute exchange policy.

That Article 1 of Law No. 1670, modified by Article 64, section A3, item 1) of Law No. 1864 of June 15, 1998, on Property and Popular Credit, establishes that the BCB is a State institution, of public law, of an autarkic nature, of indefinite duration, with legal personality and its own 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 Articles 2, 3, and 4 of Law No. 1670 provide that the object of the BCB is to seek the stability of the internal purchasing power of the national currency, and it must formulate policies of general application in exchange matters and the payment system to fulfill its object, and the Issuing Entity will take into account the Government's economic policy when formulating its policies.

That Article 14 of Law No. 1670 establishes that the BCB must ensure the strengthening of International Reserves so as to allow the normal functioning of Bolivia's international payments.

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.

That items a), c), and o) of Article 54 of Law No. 1670 indicate the following as attributes of the Board of Directors: a) 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; c) Monitor the execution of monetary, exchange,

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exchange, credit, financial intermediation, administration of International Reserves, and other policies and regulations corresponding to the BCB in accordance with the Law; and o) Approve, modify, and interpret the Statute and Regulations of the BCB, by two-thirds of the votes of all its members, without the need for any additional administrative act.

That the Sole Final Provision of Law No. 1503 establishes that within the framework of Articles 327 and 328 of the Political Constitution of the State, the BCB, with the objective of complying with its constitutional mandate, is authorized to apply what is provided in Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia and its modifications, which is sufficient for the development of its functions, without requiring provisions beyond that law.

That items 1) and 3) of Article 5 of the BCB Statute 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.

That items 1), 6), 12), and 30) of Article 10 of the BCB Statute provide that the Board of Directors has the attributes 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, determine the exchange regime and exchange policy, as well as approve, modify, and interpret the Statute and Regulations of the BCB, by two-thirds of the votes of all its members, without the need for an additional administrative act.

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 BCB Statute require qualified majorities.

That paragraphs I and II of Article 26 of the BCB Statute stipulate 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, every draft Board Resolution must be motivated and justified by a technical report from the

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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 the Foreign Exchange Operations Regulations and its modifications have the object of regulating the procedures for determining the exchange rate of the Boliviano and for the purchase and sale of United States dollars by the BCB with financial entities and with the general public.

That Technical Report BCB-GOM-SOMA-INF-2024-117 from the GOM and GOI concludes that it is necessary to modify the Foreign Exchange Operations Regulations in its Sixth Additional Provision, for operations involving the exchange of public values in foreign currency with Bolivian values maintaining value relative to the United States dollar (MVDOL), where the BCB will use the official selling exchange rate for the payment at maturity of principal and interest in national currency, recommending that the modification proposal of said Regulations be submitted to the Board of Directors of the BCB for approval.

That Legal Report BCB-GAL-SANO-DLBCI-INF-2024- BCB-GOM-SOMA-INF-2024-117 states that the proposal from the GOM and GOI has the object of modifying the Sixth Additional Provision in the Foreign Exchange Operations Regulations; which does not contravene any regulatory provision, and is therefore legally viable; recommending to the Board of Directors of the BCB to approve the modification of the Foreign Exchange Operations Regulations.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA,

RESOLVES:

Article 1.- Incorporate the Sixth Additional Provision into the Foreign Exchange Operations Regulations approved by Board Resolution No. 063/2013 of June 11, 2013, and its modifications, with the following text:

"Sixth Additional Provision. (Operations involving the exchange of public values). For operations involving the exchange of public values in foreign currency with

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Bolivian values maintaining value relative to the United States dollar (MVDOL), the Central Bank of Bolivia will use the official selling exchange rate for the payment at maturity of principal and interest in national currency."

Article 2.- This Resolution shall enter into force from the date of its publication.

Article 3.- The Presidency and the 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.