Board Resolution No. 102/2026

BOARD
BOARD RESOLUTION NO. 102/2026
SUBJECT: ECONOMIC POLICY ADVISORY - FINANCIAL ENTITIES MANAGEMENT - MODIFY THE FOREIGN EXCHANGE POSITION REGULATION FOR FINANCIAL INTERMEDIATION ENTITIES.

SEEING:
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.
Board Resolution No. 85/2026 of June 23, 2026, which approves the Statute of the BCB.
Board Resolution No. 88/2026 of June 26, 2026, which approves the BCB Foreign Exchange Operations Regulation.
Board Resolution No. 90/2026 of June 26, 2026, which approves the Foreign Exchange Position Regulation for Financial Intermediation Entities.
The report BCB-APEC-SPMEE-INF-2026-29 of July 1, 2026, issued by the Economic Policy Advisory (APEC) and the Financial Entities Management (GEF).
The report BCB-GAL-SANO-DLBCI-INF-2026-169 of July 1, 2026, issued by the Legal Affairs Management (GAL).

CONSIDERING:
That the Political Constitution of the State in its article 327 determines that the BCB has the function of maintaining the stability of the internal purchasing power of the currency to contribute to economic and social development. In its article 328 it states that the BCB, in coordination with the economic policy determined by the Executive Branch, in addition to those indicated by Law, has among its attributes to determine and execute monetary policy, execute exchange policy, regulate the payment system, authorize the issuance of currency and administer the International Reserves.

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That Law No. 1670 in its article 1 determines that the BCB is an institution of the State, of public law, of hierarchical character, of indefinite duration, with legal personality and own assets and with legal domicile in the city of La Paz. It is the only monetary and exchange authority of the country, with administrative, technical and financial competence and specialized regulatory powers of general application. In its article 3 it establishes that the BCB will formulate policies of general application in monetary, exchange and payment system matters for the fulfillment of its object.

That article 30 of Law No. 1670 states that all entities of the financial intermediation system and financial services, whose operation is authorized by the Superintendency of Banks and Financial Entities, now the Financial System Supervision Authority (ASFI), are subject to the regulatory competence of the BCB.

That articles 44 and 54 subsections a) and o) of Law No. 1670 provide 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 establishing administrative, operational and financial strategies of the Issuer Entity, approving their respective short and medium-term programs, which has the attributes to issue the rules and adopt the general decisions necessary for the Issuer Entity to fulfill the functions, competencies and powers assigned by Law; 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 the Foreign Exchange Position Regulation for Financial Intermediation Entities, in its article 1 establishes that its object is to regulate the foreign exchange position of Financial Intermediation Entities in denominations other than the national currency, in order to preserve the stability of the financial system, contribute to the execution of exchange policy and maintain the necessary control over the aggregated active and passive positions of Financial Intermediation Entities.

That the Foreign Exchange Operations Regulation in its article 1 provides that its object is to establish the procedures for the determination of the Official Exchange Rate (TCO) of the Bolivian with respect to the United States dollar (USD).

That the Statute of the BCB in numerals 1), 10) and 22) of its article 11 determines that the Board has the attributes to approve general decisions and issue the necessary rules for the BCB to fulfill the functions, competencies and powers assigned by Law; approve the rules for the execution of exchange policy 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 an additional administrative act.

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CONSIDERING:
That through report BCB-APEC-SPMEE-INF-2026-29, the APEC and GEF conclude and recommend to the Board of Directors of the BCB to approve the modification of the Foreign Exchange Position Regulation for Financial Intermediation Entities, incorporating the proposed modifications, with the objective of strengthening the conduct of exchange policy within the framework of the new regime in force, homogenize the criteria for the measurement of short and long positions and contribute to adequate intermediation in foreign currency without affecting exchange exposure.

That through report BCB-GAL-SANO-DLBCI-INF-2026-169, the GAL concludes that from the analysis carried out and in attention to the antecedents sent by the APEC and GEF, it is found that the proposal for modification of the Foreign Exchange Position Regulation for Financial Intermediation Entities is legally viable as it does not violate the current legal order, so it corresponds to the Board of Directors of the BCB its approval in accordance with what is established in article 54 subsections a) and o) of Law No. 1670 and in article 11 numerals 1), 10) and 22) of the Statute of the BCB.

THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA, RESOLVES:

Article 1.- Approve the modification of article 2 (Terms and Abbreviations) of the Foreign Exchange Position Regulation for Financial Intermediation Entities as follows:

SAYS:
"Article 2.- (Terms and Abbreviations)
For the purposes of this Regulation, the following terms and abbreviations are used:
Business Day: From Monday to Friday, does not include Saturdays, Sundays or holidays.
National Currency (NC): Currency that refers exclusively to the Boliviano.

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Foreign Currency (FC): Monetary unit of the United States of America called the United States dollar.
Other Foreign Currencies (OFC): These are all the other currencies indicated in the BCB quotation table except the United States dollar. Includes virtual assets.
UFV: Housing Development Unit.
National Currency with Value Maintenance (MVDOL): Unit of account that allows the maintenance of the value of the Bolivian with respect to the United States dollar.
National Currency with Value Maintenance in relation to the Housing Development Unit (MNUFV): Denomination that allows the maintenance of the value of the Bolivian with respect to the Housing Development Unit. Book Equity: It is the equity that arises from the Consolidated Statement of Financial Position of a Financial Intermediation Entity. Long Position: It is the excess of assets over liabilities in a specific denomination. Short Position: It is the excess of liabilities over assets in a specific denomination. Balanced Position: It is the equality or balance between liabilities and assets in a specific denomination. Exchange Position: Long, short or balanced position. Investment in Fixed Assets: These are tangible goods that are used in the entity's activity and are not intended for sale; likewise, they include rented goods and goods for the use of personnel that are not affected by the use of the entity. Net Equity: Book equity minus investment in fixed assets. Compensatory Reserves: It is the sanction for non-compliance with the foreign exchange position limit. Recomposition Reserves: It is the sanction for increases in Obligations with the public and Obligations with public companies, excepting the accrual of interest."

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SHOULD SAY:
"Article 2.- (Terms and Abbreviations)
For the purposes of this Regulation, the following terms and abbreviations are used:
Business Day: From Monday to Friday, does not include Saturdays, Sundays or holidays.
National Currency (NC): Currency that refers exclusively to the Boliviano.
Foreign Currency (FC): Monetary unit of the United States of America called the United States dollar.
Other Foreign Currencies (OFC): These are all the other currencies indicated in the BCB quotation table except the United States dollar. Includes virtual assets.
UFV: Housing Development Unit.
National Currency with Value Maintenance (MVDOL): Unit of account that allows the maintenance of the value of the Bolivian with respect to the United States dollar.
National Currency with Value Maintenance in relation to the Housing Development Unit (MNUFV): Denomination that allows the maintenance of the value of the Bolivian with respect to the Housing Development Unit. Book Equity: It is the equity that arises from the Consolidated Statement of Financial Position of a Financial Intermediation Entity. Long Position: It is the excess of assets over liabilities in a specific denomination. Short Position: It is the excess of liabilities over assets in a specific denomination. Balanced Position: It is the equality or balance between liabilities and assets in a specific denomination. Exchange Position: Long, short or balanced position.

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Investment in Fixed Assets: These are tangible goods that are used in the entity's activity and are not intended for sale; likewise, they include rented goods and goods for the use of personnel that are not affected by the use of the entity. Net Equity: Book equity minus investment in fixed assets. Compensatory Reserves: It is the sanction for non-compliance with the foreign exchange position limit."

Article 2.- Approve the modification of article 4 (Foreign Exchange Position Limits) of the Foreign Exchange Position Regulation for Financial Intermediation Entities as follows:

SAYS:
"Article 4.- (Foreign Exchange Position Limits).
Financial Intermediation Entities may maintain exchange positions according to the following limits:
a) For the sum of positions in FC and OFC, the following limits are established:

1. Multiple Banks, SME Banks, Housing Financial Entities, Open and Corporate Savings and Credit Cooperatives and State Financial Entities or with Majority State Participation:
   A long position up to the equivalent of 10% (TEN PERCENT) of the value of the entity's net equity. Financial Intermediation Entities whose net equity registers a negative value will be automatically considered in non-compliance with this Regulation. A short position up to the equivalent of 50% (FIFTY PERCENT) of the entity's book equity.
2. Development Financial Institutions (DFI):
   A long position up to the equivalent of 40% (FORTY PERCENT) of the value of the entity's net equity, from June 16, 2026.

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A long position up to the equivalent of 20% (TWENTY PERCENT) of the value of the entity's net equity, from June 30, 2026.
A short position up to the equivalent of 50% (FIFTY PERCENT) of the entity's book equity, from June 30, 2026. b) For the position in MVDOL, a balanced position equivalent to 0% (ZERO PERCENT) of the net equity is established, with an allowed margin of long or short position up to 1% of the Entity's Net Equity. c) For the position in MNUFV, a long position up to the equivalent of 20% (TWENTY PERCENT) of the book equity is established."

SHOULD SAY:
"Article 4.- (Foreign Exchange Position Limits).
Financial Intermediation Entities may maintain exchange positions according to the following limits:
a) For the sum of positions in FC and OFC, the following limits are established:

1. Multiple Banks, SME Banks, Housing Financial Entities, Open and Corporate Savings and Credit Cooperatives and State Financial Entities or with Majority State Participation:
   A long position up to the equivalent of 10% (TEN PERCENT) of the value of the entity's book equity. Financial Intermediation Entities whose book equity registers a negative value will be automatically considered in non-compliance with this Regulation. A short position up to the equivalent of 50% (FIFTY PERCENT) of the entity's book equity.
2. Development Financial Institutions (DFI):
   A long position up to the equivalent of 40% (FORTY PERCENT) of the value of the entity's net equity, from June 16, 2026.

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A long position up to the equivalent of 20% (TWENTY PERCENT) of the value of the entity's book equity, from June 30, 2026.
A short position up to the equivalent of 50% (FIFTY PERCENT) of the entity's book equity. b) For the position in MVDOL, a balanced position equivalent to 0% (ZERO PERCENT) of the book equity is established, with an allowed margin of long or short position up to 1% of the entity's book equity. c) For the position in MNUFV, a long position up to the equivalent of 20% (TWENTY PERCENT) of the book equity is established."

Article 3.- Approve the modification of article 6 (Sanctions) of the Foreign Exchange Position Regulation for Financial Intermediation Entities as follows:

SAYS:
"Article 6.- (Sanctions). a) Compensatory Reserve (REC) Non-compliance with the foreign exchange position limits is considered when the financial intermediation entity exceeds the maximum limits established in long position for more than three (3) consecutive business days within the same reserve requirement period, in which case:
i. Verified the non-compliance in an initial reserve requirement period (period 0), the entity must constitute a Compensatory Reserve (REC) equivalent to two percent (2%) of its obligations subject to reserve in NC, which will be applied at the beginning of the immediately subsequent reserve requirement period (period 1), during which the corresponding resources will remain immobilized without remuneration. An entity will be sanctioned while it maintains resources in the REC.
ii. Once the entity complies with the established long position limits, the release of the resources corresponding to the REC will take effect from the immediately subsequent reserve requirement period to that in which such compliance is verified.
iii. If at the end of the reserve period (period 1) the entity has not regularized its foreign exchange position within the established limits, the REC will be increased by two percentage points (2pp) additional, reaching a total of four percent (4%) of the obligations subject to reserve. This level of REC must be maintained, for a minimum of two (2) reserve periods (periods 2 and 2) and will remain in force until the entity regularizes its foreign exchange position.
iv. The verification of compliance with the foreign exchange position limits, as well as the determination and application of the REC, will be carried out in each reserve requirement period by the Financial Entities Management of the BCB.
v. The RECs will be constituted with resources from the current and reserve accounts in NC in a specific account administered by the BCB.
b) Recomposition Reserves (RR)
i. When there is an increase in the balances in FC and OFC of Obligations with the public and Obligations with public companies, excepting the accrual of interest, a reserve must be constituted in its equivalent in NC under the concept of Recomposition Reserve (RR), which will be calculated based on the official exchange rate published by the BCB on the day of the EIF's non-compliance. An entity will be sanctioned while it maintains resources in the RR.
ii. The RR will be constituted with resources from the current and reserve accounts in NC in a specific account administered by the BCB.
iii. The verification of the modification of the balances of the mentioned accounts, as well as the determination and application of the RR, will be carried out by the Financial Entities Management of the BCB with daily information taking as a comparison base May 12, 2026 for Multiple Banks, SME Banks, Housing Financial Entities, Open and Corporate Savings and Credit Cooperatives and State Financial Entities, and June 16, 2026 for DFIs and BDP."

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SHOULD SAY:
"Article 6.- (Sanctions).
Non-compliance with the foreign exchange position limits is considered when the financial intermediation entity exceeds the maximum limits established in long position for more than three (3) consecutive business days within the same reserve requirement period, in which case:
i. Verified the non-compliance in an initial reserve requirement period (period 0), the entity must constitute a Compensatory Reserve (REC) equivalent to two percent (2%) of its obligations subject to reserve in NC, which will be applied at the beginning of the immediately subsequent reserve requirement period (period 1), during which the corresponding resources will remain immobilized without remuneration. An entity will be sanctioned while it maintains resources in the REC.
ii. Once the entity complies with the established long position limits, the release of the resources corresponding to the REC will take effect from the immediately subsequent reserve requirement period to that in which such compliance is verified.
iii. If at the end of the reserve period (period 1) the entity has not regularized its foreign exchange position within the established limits, the REC will be increased by two percentage points (2pp) additional, reaching a total of four percent (4%) of the obligations subject to reserve. This level of REC must be maintained, for a minimum of two (2) reserve periods (periods 2 and 3) and will remain in force until the entity regularizes its foreign exchange position.
iv. The verification of compliance with the foreign exchange position limits, as well as the determination and application of the REC, will be carried out in each reserve requirement period by the Financial Entities Management of the BCB.
v. The RECs will be constituted with resources from the current and reserve accounts in NC in a specific account administered by the BCB."

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Article 4.- This Board Resolution will enter into force from its publication.
Article 5.- The Presidency and General Management are in charge of the execution and compliance of this Resolution.

La Paz, July 1, 2026
SIGNED: DAVID IVÁN ESPINOZA TORRICO, Claudia Haydee Pacheco Ayala, Dennise Sussan Martín Alarcón, Walter Fernando Orccalla Rocha, Alvaro Alfonso Romero Villavicencio.