BOARD OF DIRECTORS

BOARD RESOLUTION NO. 090/2024

SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT – MODIFY THE REGULATION ON THE PURCHASE OF GOLD IN THE INTERNAL MARKET DESTINED TO STRENGTHEN INTERNATIONAL RESERVES, UNDER LAW NO. 1503 OF MAY 5, 2023.

VIEWED:

The Political Constitution of the State of February 7, 2009.
Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB) and its modifications.
Law No. 1503 of May 5, 2023, Law on the Purchase of Gold Destined to Strengthen International Reserves.
Supreme Decree No. 5076 of November 29, 2023.
The BCB Statute, approved by Board Resolution No. 95/2022 of October 6, 2022.
The Regulation on the Purchase of Gold in the Internal Market Destined to Strengthen International Reserves, approved by B.R. No. 066/2024 of May 28, 2024, and its modification.
The Regulation for the Definition of the Gold Export Quota and for the Issuance of the Gold Export Certificate, approved by B.R. No. 39/2024 of March 18, 2024.
The Report from the International Operations Management BCB-GOI-SRES-DOI-INF-2024-127 of July 8, 2024.
The Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2024-271 of July 8, 2024.

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CONSIDERING:

That Article 327 of the Political Constitution of the State determines that the Central Bank of Bolivia (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 numeral 5 of Paragraph I of Article 328 of the Political Constitution of the State establishes that it is an attribute of the Central Bank of Bolivia, in coordination with the economic policy determined by the Executive Branch, to administer International Reserves.

That Paragraph I of Article 349 of the Political Constitution of the State provides that natural resources are the direct, indivisible, and imprescriptible property and domain of the Bolivian people, and their administration will correspond to the State in accordance with the collective interest.

That Article 1 of Law No. 1670 establishes that the Central Bank of Bolivia is a State institution, of public law, of an autarkic nature, of indefinite duration, with its own legal personality and assets and with its 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 normative faculties of general application.

That Article 14 of Law No. 1670 states that the BCB will 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 normative rules of general application, and internal norms.

That subsections a), c), and o) of Article 54 of Law No. 1670 indicate the following as attributes of the Board of Directors: Issue the norms and adopt the general decisions that are necessary for the BCB to fulfill the functions, competencies, and faculties assigned to it by

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the Law, carry out follow-up on the execution of monetary, exchange, credit, financial intermediation, and International Reserves administration policies and regulations, and 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 paragraph III of Article 9 of Law No. 1503 establishes that the Central Bank of Bolivia will take the necessary actions for the replenishment of International Reserves, based on market conditions and the liquidity of foreign exchange in the International Reserves.

That the Final Provision of Law No. 1503 states 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 further provisions from said Law.

That Supreme Decree No. 5134 of March 13, 2024 creates EPCORO as a state subsidiary of the Bolivian Mining Corporation - COMIBOL, with legal personality and its own assets, indefinite duration, autonomy in technical, financial, administrative, legal, and commercial management; whose main business and activity is the production and commercialization of gold throughout the mining productive chain, within the framework of Law No. 535, of May 28, 2014, on Mining and Metallurgy, to strengthen International Reserves.

That subsections 1) and 3) of Article 5 of the BCB Statute provide that its Board of Directors has normative competence to issue specialized norms 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 purpose.

That subsection 1) of Article 10 of the BCB Statute provides that the Board of Directors has the faculty to approve general decisions and issue the norms that are necessary for the BCB to fulfill the functions, competencies, and faculties assigned to it by Law.

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That subsection 30) of the aforementioned Article 10 of the BCB Statute states that the Board of Directors may 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 Article 26 of the Statute stipulates that the Board of Directors rules 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 Management or Managements to whom the subject matter of the Resolution corresponds, and by a report from the Legal Affairs Management. These reports must be submitted to the Board of Directors by the General Management with its recommendation.

That the Report from the International Operations Management BCB-GOI-SRES-DOI-INF-2024-127 concludes that it is necessary to modify the Regulation on the Purchase of Gold in the Internal Market Destined to strengthen International Reserves as they are technically viable; therefore, it recommends to the Board of Directors of the BCB to approve the modification proposal.

That the Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2024-271 concludes that the proposal from the International Operations Management to modify the Regulation on the Purchase of Gold in the Internal Market Destined to Strengthen International Reserves is legally appropriate, as it does not contravene the current legal framework, recommending to the Board of Directors of the BCB its approval.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify Article 20 of the Regulation on the Purchase of Gold in the Internal Market Destined to Strengthen International Reserves, within the framework of Law No. 1503 of May 5, 2023, with the following text:

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"ARTICLE 20.- (ADVANCE PAYMENT)

Upon receipt of the gold, the BCB will grant an advance to the seller of 95% which will be determined by multiplying the net weight of the bar or ingot by the Preliminary Gold Purity and the purchase price."

Article 2.- Modify Annexes I and IV of the Regulation on the Purchase of Gold in the Internal Market Destined to Strengthen International Reserves, within the framework of Law No. 1503 of May 5, 2023, which form part of this Resolution as an Annex.

Article 3.- Incorporate Annex V of the Regulation on the Purchase of Gold in the Internal Market Destined to Strengthen International Reserves, within the framework of Law No. 1503 of May 5, 2023, which forms part of this Resolution as an Annex.

Article 4.- This Resolution will enter into force from its publication.

Article 5.- The Presidency and the General Management are charged with the compliance of this Resolution.

La Paz, July 9, 2024

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

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ANNEX I - Calculation Methodology

1. Calculation Methodology for BCB Gold Purchases

a) Fine Weight
Fine Weight (g) = Net Weight (g) x Gold Purity (%)

b) Purchase Price (USD/oz)
Purchase Price (USD/oz) = International market quotation (USD/oz) × [1 + % premium or discount]

c) Purchase Price (Bs/g)
Purchase Price (Bs/g) = [ (Purchase Price (USD/oz) / 31.1035 (g/oz)) × Exchange Rate (Bs/USD) ]

d) Market Sale Value
Market Sale Value (Bs) = Fine Weight (g) × Purchase Price (Bs/g)

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2. Percentage of Premium or Discount per Operation

Ranges by quantity of gold grams	% Premium or Discount*
Lower	Upper
500	2,000	-1.84%
2,001	3,000	-1.38%
3,001	4,000	0.00%
4,001	5,000	0.05%
5,001	6,000	0.15%
6,001	7,000	0.25%
7,001	8,000	0.35%
8,001	9,000	0.45%
9,001	10,000	0.55%
10,001	20,000	1.00%
20,001	30,000	1.50%
30,001	40,000	2.00%
40,001	50,000	2.50%
50,001	60,000	3.50%
60,001	70,000	4.50%
70,001	80,000	5.50%
80,001	90,000	6.50%
90,001	120,000	8.50%
120,001	Onwards	8.75%

*Applicable to the quantity of fine gold.

3. Percentage of Premium or Discount for Periodic Sales

The seller may present a commitment note in accordance with Annex IV, committing to sell to the BCB a quantity equal to or greater than 50,001 grams of fine gold within a maximum period of fifteen (15) business days.

The premium will be applied to the quantity effectively delivered to the BCB, taking into account the quotation from the BCB Quotation Table on the last business day of the period, according to the range established in the Table in point 2.

The 95% advance and the settlement of the 5% of each operation carried out during the committed period will only be made based on the quotation from the BCB Quotation Table, without including the premium in each delivery of gold sale to the BCB.

4. Request for Exchange of GEC

In the event that the gold seller has an unused Gold Export Certificate (GEC), they may request the exchange of said GEC in accordance with Annex V, in order to benefit from a one-time premium of 1% in their next gold sale to the BCB.

This premium is only applicable up to the quantity specified in the presented GEC and is not cumulative with the Premium or Discount Percentages for Periodic Sales.

The presented GEC will be considered used and will automatically become invalid.

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ANNEX IV – Format of Gold Sale Commitment Note

La Paz, ……………………

Sir
………………
General Manager
Central Bank of Bolivia
Present.

Ref. Gold Sale Commitment

I have the honor to address you:

I, …………… representative of the company ………………… commit to selling gold to the Central Bank of Bolivia, in a quantity equal to or greater than 50,001 grams of fine gold in ……… (…) business days between the ……… and the …… of …… of…….

Sincerely.

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ANNEX V – Format of GEC Exchange Request Note