Board Resolution No. 102/2024

BOLIVIA
DIRECTORATE
BOARD RESOLUTION NO. 102/2024
SUBJECT:
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 for the Strengthening of International Reserves.
Supreme Decree No. 25870 of August 11, 2000, of the Regulation to the General Customs Law and its modifications.
The Statute of the BCB approved by Board Resolution No. 095/2022 of October 6, 2022.
The Regulation of the International Reserves Committee approved by Board Resolution No. 017/2023 of October 25, 2023.
The Regulation for the Administration of International Reserves approved by Board Resolution No. 071/2023 of May 9, 2023 and its modifications.
Technical Report BCB-GQI-SRES-DNI-INF-2024-58 of August 5, 2024, issued by the International Operations Management (GOI).

INTERNATIONAL OPERATIONS MANAGEMENT - APPROVE
THE EXIT FROM THE NATIONAL CUSTOMS TERRITORY OF GOLD ACQUIRED IN THE DOMESTIC MARKET.

CENTRAL BANK OF
BOLIVIA
PLURINATIONAL STATE OF
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
DIRECTORATE
//2. B.R. No. 102/2024

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 Popular Property and Credit, establishes that the BCB is an institution of the State, of public law, of an autarchic nature, of indefinite duration, with its own legal personality and assets and with a 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 14 of Law No. 1670 establishes that the BCB shall ensure the strengthening of International Reserves so as to allow the normal functioning of Bolivia's international payments.

That Article 15 of Law No. 1670 provides that the International Reserves of the BCB are constituted, among others, by physical gold.

Legal Report BCB-GAL-SANO-DLBCI-INF-2024-326 of August 5, 2024, issued by the Legal Affairs Management (GAL).

CENTRAL BANK OF
BOLIVIA
PLURINATIONAL STATE OF
BOLIVIA

That Articles 327 and 328 of the CPE determine that the BCB is an institution of public law, with its own legal personality and assets, which, within the framework of the State's economic policy, has the function of maintaining the internal purchasing power stability of the currency, to contribute to economic and social development, its attribution being, in coordination with the economic policy determined by the Executive Branch, to administer the International Reserves.

That Article 44 of Law No. 1670 establishes that the highest authority of the BCB is its Directorate, 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 oversight of their execution, it will have access to information, independent analysis and audit services.

BICENTENNIAL OF BOLIVIA
DIRECTORATE
//3. B.R. No. 102/2024

CENTRAL BANK OF
BOLIVIA

That subsections a) and c) of Article 54 of Law No. 1670 indicate as attributions of the Directorate 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 the Law; Carry out the monitoring of the execution of monetary, exchange, credit, financial intermediation, international reserves administration and other policies and regulations corresponding to the BCB in accordance with Law No. 1670.

That Article 7 of Law No. 1503 provides that once the gold purchase process is concluded and the total settlement has been made in the domestic market, the BCB may refine the gold abroad to obtain the quality of good delivery bars and in accordance with regulations, regulating the exit from the national customs territory.

PLURINATIONAL STATE OF
BOLIVIA

That subsections 1) and 3) of Article 5 of the BCB Statute provide that its Directorate has regulatory competence to issue specialized norms in the fields

That Article 1 of the aforementioned Law No. 1503 has the object of authorizing the BCB to purchase gold from the domestic market for the strengthening of International Reserves and to carry out financial operations with International Reserves in gold on international markets.

That Article 9 of Law No. 1503 establishes that the BCB will carry out operations in international markets with reserves in gold, 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 International Reserves.

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 International Reserves, constituted by 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, shall be carried out in accordance with applicable legal provisions and prior presentation of the Resolution of the Ministry of Finance, currently the Ministry of Economy and Public Finance, that authorizes such operation.

BOLIVIA
DIRECTORATE
//4. B.R. No. 102/2024

That paragraph I of Article 24 of said norm provides that the Resolutions and decisions of the Directorate 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 numeral 5) of Article 6 of the Regulation of the International Reserves Committee establishes among others as a Function of the Committee to propose the treatment that will be applied to International Reserves investments in case of immediate liquidity requirement, to recommend to the BCB.

That subsections 1) and 6) of Article 10 of the BCB Statute provide that the Directorate 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 the Law, approve the policy and norms for the administration of International Reserves, as well as carry out the monitoring of their execution.

That Article 26 of the BCB Statute stipulates that the Directorate pronounces 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 Resolution of the Directorate must be motivated and justified by a technical report from the Management or Managements to which the matter subject to the Resolution corresponds and by a report from the Legal Affairs Management. These reports must be sent to the Directorate by the General Management with its recommendation.

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 locally purchased gold, to carry out investment operations, shall be approved by Board Resolution.

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

CENTRAL BANK OF
BOLIVIA
PLURINATIONAL STATE OF
BOLIVIA

assigned by Law and technical competence for the formulation of policies and the application of instruments that allow it to fulfill its object.

BICENTENNIAL OF BOLIVIA
DIRECTORATE
//5. B.R. No. 102/2024

Article 3.-

That Report BCB-GO1-SRES-DNI-INF-2024-58, recommends to the Directorate of the BCB to approve the exit from the national customs territory of 122 gold bars acquired in the domestic market with an approximate weight of 0.98 tons, of which it is estimated 0.92 tons of fine gold, destined to Turkey for refining abroad.

THEREFORE,

THE DIRECTORATE OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

CENTRAL BANK OF
BOLIVIA
PLURINATIONAL STATE OF
BOLIVIA

of 2023 provides that the exit of gold from the national customs territory for the purpose of refining abroad shall be approved by Board Resolution.

That Report BCB-GAL-SANO-DLBCI-INF-2024-326, concludes that the authorization of the exit from the national customs territory of gold acquired in the domestic market for its refining and the carrying out of investment operations does not violate the current regulations, therefore it recommends to the Directorate of the BCB the approval of the exit from the national customs territory of 122 gold bars acquired in the domestic market with an approximate weight of 0.98 tons, of which it is estimated 0.92 tons of fine gold, destined to Turkey for 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 Management of

Article 1.- Approve the exit from the national customs territory of 122 gold bars acquired in the domestic market with an approximate weight of 0.98 tons, of which it is estimated 0.92 tons of fine gold, destined to Turkey for refining abroad.

Article 2.- 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.

PLURINATIONAL STATE OF
BICENTENNIAL OF
BOLIVIA
DIRECTORATE
//6. B.R. No. 102/2024

Article 4.-

La Paz, August 7, 2024

of Bolivia S.-

SIGNED: ROGER EDWIN ROJAS ULO, Oscar Ferrufino Morro, Gabriel Herbas Camacho.
Gumercindo Hector Pino Guzman. Diego Alejandro Perez Cueto Eulert.

The Presidency and the General Management are in charge of compliance with the present Resolution.

CENTRAL BANK OF
BOLIVIA

International Operations will process the Ministerial Resolution that authorizes the exit of the gold from the national customs territory before the Ministry of Economy and Public Finance.