BOARD OF DIRECTORS

BOARD RESOLUTION NO. 107/2024

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

VISTOS:

• 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.
• The BCB Statute, approved by Board Resolution No. 095/2022 of October 6, 2022.
• The Regulation for the Administration of International Reserves, approved by Board Resolution No. 071/2023 of May 9, 2023 and its modifications.
• The Regulation for the Purchase of Gold in the Internal Market Destined to Strengthen International Reserves under Law No. 1503 of May 5, 2023, approved by Board Resolution No. 066/2024 of May 28, 2024 and its modifications.
• Report BCB-GOI-SRES-DOI-INF-2024-160 of August 19, 2024, issued by the International Operations Management (GOI).
• Report BCB-GAL-SANO-DLBCI-INF-2024-350 of August 19, 2024, issued by the Legal Affairs Management (GAL).

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CONSIDERING:

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

That Article 1 of Law No. 1670 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 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 regulatory powers 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 15 of Law No. 1670 establishes that International Reserves consist, among other assets, of physical gold.

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 subsections a), c), and o) of Article 54 of Law No. 1670 designate as attributes of the Board of Directors to issue rules and adopt general decisions that are necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by the Law; to monitor the execution of monetary, exchange, credit, financial intermediation, and International Reserves administration policies and regulations; and to approve, modify, and interpret the Statute and Regulations of the BCB, by two-thirds of

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votes of all its members, without the need for any additional administrative act.

That Article 1 of Law No. 1503 establishes that the purpose of said Law is to authorize the BCB to purchase gold from the internal market to strengthen International Reserves and to carry out financial operations with International Reserves in gold in international markets.

That Article 2 of Law No. 1503 states that the scope of application of this Law includes individual and legal persons, public and private, legally established, registered, and authorized by competent entities, that participate in the marketing of gold.

That Article 4 of Law No. 1503 provides that for the purchase of gold in the internal market, the BCB will pay in national currency, taking as a base the international market quotation price of gold, under competitive conditions, in accordance with regulations issued by the Issuing Entity.

That Article 5 of Law No. 1503 establishes that the BCB will set the conditions, characteristics, periodicity, limits, and procedures for the acquisition of gold from the internal market, in accordance with regulations.

That the Sole Final Provision of Law No. 1503 determines 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 empowered 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 beyond said Law.

That Articles 5 and 6 of the BCB Statute establish that they have normative, administrative, technical, and financial competencies. Likewise, that BCB rules will be approved by Board Resolution.

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That subsections 1), 6), and 30) of Article 10 of the BCB Statute provides that the Board of Directors has the faculty to approve general decisions and issue rules that are necessary for the Issuing Entity to fulfill the functions, competencies, and powers assigned to it by the Law; to approve policies and rules for the administration of International Reserves, monitor their execution, as well as approve, modify, and interpret the Statute and regulations, by two-thirds of votes of all its members, without the need for an additional administrative act.

That Articles 24 and 26 of the Statute establish that Board Resolutions will be adopted by a simple majority of votes of the members present in a meeting. Since 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 GAL. These reports must be sent to the Board of Directors by the General Management with its recommendation.

That Report BCB-GOI-SRES-DOI-INF-2024-160 concludes that the BCB is empowered to establish the conditions, characteristics, periodicity, limits, and procedures for the acquisition of gold from the internal market to strengthen International Reserves, paying in national currency and under competitive conditions. On the other hand, the current Premium or Discount Percentages do not generate adequate incentives, so it is necessary to improve the conditions under which the Issuing Entity acquires gold; therefore, it is necessary to modify the Regulation for the Purchase of Gold in the Internal Market Destined to Strengthen International Reserves under Law No. 1503 of May 5, 2023, these modifications being technically viable and recommending to the Board of Directors their approval.

That Report BCB-GAL-SANO-DLBCI-INF-2024-350 concludes that the GOI's proposal to modify the Regulation for the Purchase of Gold in the Internal Market Destined to Strengthen International Reserves under Law No. 1503 of May 5, 2023, in its Annex I, Point 2 "Percentage of Premium or Discount per Operation," is technically and legally viable, recommending to the BCB Board of Directors its approval as it does not contravene any legal provision.

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THEREFORE,

BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify Annex I of the Regulation for the Purchase of Gold in the Internal Market Destined to Strengthen International Reserves under Law No. 1503 of May 5, 2023, which forms an integral part of this Resolution as an annex.

Article 2.- This Resolution will enter into force from its publication.

Article 3.- The Presidency and the General Management are charged with the compliance of this Resolution.

La Paz, August 20, 2024

SIGNED. ROGER EDWIN ROJAS ULO, Oscar Ferrufino Morro, 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 (gr) = Net Weight (gr) x Gold Purity (%)

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

c) Purchase Price (Bs/gr)
Purchase Price (Bs/gr)
= [ (Purchase Price (USD/OT) / 31.1035 (gr/OT)) × Exchange Rate (Bs/USD) ]

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

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2. Percentage of Premium or Discount per Operation

Ranges by quantity of gold grams	% of Premium or Discount*
Lower	Upper
500	2,000	-1.84%
2,001	3,000	-1.38%
3,001	4,000	0.00%
4,001	10,000	0.50%
10,001	20,000	1.50%
20,001	25,000	2.00%
25,001	30,000	3.00%
30,001	40,000	4.00%
40,001	60,000	5.00%
60,001	70,000	6.00%
70,001	80,000	7.00%
80,001	90,000	8.50%
90,001	100,000	9.50%
100,001	110,000	10.00%
110,001	120,000	11.00%
120,001	150,000	11.50%
150,001	onwards	12.50%

*Applicable to the amount 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 of the BCB Quotation Table on the last business day of the period, according to the range established in the Table of point 2.

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

4. Request for Exchange of CEO

In the event that the gold seller has an unused Gold Export Certificate (CEO), they may request the exchange of said CEO 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 CEO and is not cumulative with the Premium or Discount Percentages for Periodic Sales.

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