Board Resolution No. 097/2024

BOARD
RESOLUTION OF THE BOARD OF DIRECTORS NO. 097/2024 SUBJECT:
VIEWED:
The Political Constitution of the State, of February 7, 2009 (CPE).
The Statute of the BCB approved by Board Resolution No. 095/2022 of October 6, 2022.
Law No. 1670, of October 31, 1995, of the Central Bank of Bolivia (BCB) and its modifications.
Supreme Decree No. 25870 of August 11, 2000, of the Regulation to the General Customs Law and its modifications.
Law No. 1503 of May 5, 2023, on the Purchase of Gold Intended for the Strengthening of International Reserves.
The Regulation of the International Reserves Committee approved by Board Resolution No. 017/2023 of January 25, 2023.
The Regulation for the Administration of International Reserves approved by Board Resolution No. 071/2023 of May 9, 2023 and its modifications.
The Technical Report BCB-GOI-SRES-DNI-INF-2024-53 of July 22, 2024, issued by the International Operations Management (GOI).
INTERNATIONAL OPERATIONS MANAGEMENT - APPROVE
THE EXIT OF THE NATIONAL CUSTOMS TERRITORY OF GOLD ACQUIRED IN THE DOMESTIC MARKET.
CENTRAL BANK
OF
BOLIVIA
BOLIVIA
The Regulation on the Purchase of Gold in the Domestic Market Intended for the Strengthening of International Reserves, within the framework of Law No. 1503 of May 5, 2023, approved by Board Resolution No. 066/2024 of May 28, 2024 and its modifications.

BICENTENNIAL OF BOLIVIA
BOARD
//2. B.D. No. 097/2024
CONSIDERING:
That Article 1 of Law No. 1670, modified by Article 64, section A3, numeral 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 its own legal personality and 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 Article 15 of Law No. 1670 provides that the BCB's International Reserves are constituted, among others, by physical gold. That Article 14 of Law No. 1670 establishes that the BCB will ensure the strengthening of the International Reserves so that they allow the normal functioning of Bolivia's international payments. CENTRAL BANK OF BOLIVIA That Articles 327 and 328 of the CPE determine that the BCB is a public law institution, with its own legal personality and 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, being its attribution, in coordination with the economic policy determined by the Executive Branch, to administer the International Reserves. PLURINATIONAL STATE OF BOLIVIA The Legal Report BCB-GAL-SANO-DLBCI-INF-2024-296 of July 22, 2024, issued by the Legal Affairs Management (GAL). 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 norms; as well as establishing administrative, operational and financial strategies of the BCB, approving their respective short and medium-term programs. For the monitoring and supervision of their execution, it will have independent analysis and audit information and services.

BICENTENNIAL OF
BOLIVIA
BOARD
//3. B.D. No. 097/2024
That numerals 1) and 3) of Article 5 of the BCB Statute provide that its Board of Directors That Article 7 of Law No. 1503 provides that once the gold purchase process is concluded and the total settlement in the domestic market has been made, the BCB may refine the gold abroad to obtain the quality of good delivery bars and in accordance with regulations, it will regulate the exit from the national customs territory.
Article 9 of Law No. 1503 establishes that the BCB will carry out operations in international markets with gold reserves, being able to buy, invest, deposit in custody, use in hedging instruments, transform and convert them into foreign currency, in order to optimize the liquidity and/or return of the International Reserves.
CENTRAL BANK
OF
BOLIVIA
That Article 1 of Law No. 1503 has as its object to authorize the BCB to purchase gold from the domestic market for the strengthening of International Reserves and to carry out financial operations with gold International Reserves in international markets. PLURINATIONAL STATE OF BOLIVIA That subsections a) and c) of Article 54 of Law No. 1670 indicate as attributions of the Board of Directors the following: Issue the norms and adopt the general decisions that would be necessary for the BCB to fulfill the functions, competencies and powers assigned to it by Law; carry out the monitoring of the execution of monetary, exchange, credit, financial intermediation, administration of International Reserves and other policies and regulations corresponding to the BCB in accordance with Law No. 1670. That Article 185 of Supreme Decree No. 25870 of August 11, 2000, of the Regulation to the General Customs Law and its modifications establishes that the exit from the national customs territory of the International Reserves, composed of convertible currencies and gold, by virtue of operations carried out by the BCB with international financial organizations and other institutions abroad, derived from its central banking functions or that are carried out to facilitate payment and credit operations, must be carried out in accordance with applicable legal provisions and prior presentation of the Resolution of the Ministry currently the Ministry of Economy and Public Finance that authorizes such operation.

Ed®BOLIVIA
BOARD
//4. B.D. No. 097/2024
That numerals 1) and 6) of Article 10 of the BCB Statute provide that the Board of Directors has the attributions to approve general decisions and issue the norms that are necessary for the BCB to fulfill the functions, competencies and powers assigned to it by Law, approve the policy and norms for the administration of International Reserves, as well as carry out the monitoring of their execution. That paragraph 1 of Article 24 of said norm provides that the 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. Numeral 5) of Article 6 of the Regulation of the International Reserves Committee establishes among other functions of the Committee the proposing of the treatment that will be applied to International Reserve investments in case of immediate liquidity requirement, to recommend to the BCB. CENTRAL BANK OF BOLIVIA That Article 26 of the BCB Statute stipulates that the Board of Directors pronounces itself on matters within its competence through Resolutions. It can also do so through decisions that will be expressly recorded in the Minutes. Likewise, any draft Resolution of the Board of Directors 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. 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 object. &BOLIVIA T That Paragraph VI of Article 11 of the Regulation for the Administration of International Reserves establishes that the exit from the national customs territory of the gold purchased locally, to carry out investment operations, will be approved by Board Resolution.

BOLIVIA
BOARD
//5. B.D. No. 097/2024
Article 1.-
Article 2.-
Article 3.-
CENTRAL BANK
OF
BOLIVIA
PLURINATIONAL STATE OF
BOLIVIA
That Article 25 of the Regulation on the Purchase of Gold in the Domestic Market Intended for the Strengthening of International Reserves, within the framework of Law No. 1503 of May 5, 2023 provides that the exit of gold from the national customs territory for the purpose of refining abroad will be approved by Board Resolution. That Report BCB-GOI-SRES-DNI-INF-2024-53, concludes that it corresponds to the Board of Directors of the BCB to approve the exit from the national customs territory of 225 gold bars acquired in the domestic market with an approximate weight of 1.97 tons, of which it is estimated 1.85 tons of fine gold, destined to Turkey for the purpose of refining abroad. In accordance with Article 26 of the Regulation on the Purchase of Gold in the Domestic Market Intended for the Strengthening of International Reserves, within the framework of Law No. 1503 of May 5, 2023, the International Operations Management will process the Ministerial Resolution that authorizes the exit of gold from the national customs territory before the Ministry of Economy and Public Finance. APPROVE the exit from the national customs territory of 225 gold bars acquired in the domestic market with an approximate weight of 1.97 tons, of which it is estimated 1.85 tons of fine gold, destined to Turkey for the purpose of refining abroad. THEREFORE, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES That Report BCB-GAL-SANO-DLBCI-INF-2024-296, concludes that the authorization of the exit from the national customs territory of the gold acquired in the domestic market for its refining and the carrying out of investment operations does not violate the current regulations and is concordant with Law No. 1503 on the Purchase of Gold Intended for the Strengthening of the International Reserves, the Regulation on the Purchase of Gold in the Domestic Market Intended for the Strengthening of International Reserves, within the framework of Law No. 1503 of May 5, 2023 and the Regulation for the Administration of International Reserves is legally procedent, being viable its approval by the Board of Directors of the BCB. Authorize the investment operations of the gold resulting from the refining indicated in the preceding Article, in accordance with what is established in the Regulation for the Administration of International Reserves.

EW^IOLMA
BOARD
//6. B.D. No. 097/2024
Article 4.- This Resolution will enter into force from its approval.
Article 5.-
La Paz, July 23, 2024.
The Presidency and the General Management are in charge of the execution and compliance with this Resolution. k CENTRAL BANK 1 OF " BOLIVIA SIGNED. ROGER EDWIN ROJAS ULO, Oscar Ferrufino Morro, Gabriel Herbas Camacho, Gumercindo Hector Pino Guzman. Diego Alejandro Perez Cueto Eulert. PLURINATIONAL STATE OF BOLIVIA