Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 108/2016

SUBJECT: ECONOMIC POLICY ADVISORY AND FINANCIAL INSTITUTIONS MANAGEMENT APPROVE THE FOREIGN EXCHANGE POSITION REGULATION ADAPTED TO LAW NO. 393.

VIEWED:

The Political Constitution of the State promulgated on February 7, 2009.

Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB).

The Statute of the BCB approved by Board Resolution No. 128/2005 of October 21, 2005 and its subsequent modifications.

The Foreign Exchange Position Regulation approved by Board Resolution No. 122/2007 of September 25, 2007 and modified according to Board Resolutions No. 154/2007 of December 18, 2007, No. 038/2008 of March 25, 2008, and No. 144/2009 of December 15, 2009.

ASFI Resolution No. 687/2013 of October 16, 2013.

The Report from the Economic Policy Advisory and Financial Institutions Management BCB-APEC-SIE-INF-2016-51 of June 9, 2016.

The Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2016-136 of June 10, 2016.

CONSIDERING:

That the Political Constitution of the State in its article 328 provides that the BCB is authorized, in coordination with the economic policy determined by the Executive Branch, to determine and execute monetary policy and execute exchange rate policy.

That the BCB, in compliance with what is provided in article 19 of Law No. 1670, has established a Foreign Exchange Position Regulation of mandatory compliance by Institutions of the Financial System.

That article 11 numeral 12) of the Statute of the BCB establishes that the Board of Directors of the Issuing Entity has the authority to determine the exchange rate regime and the exchange rate policy of the country.

That the Foreign Exchange Position Regulation aims to regulate the foreign exchange position of banking and non-banking financial entities in denominations other than the national currency, in order to preserve the stability of the financial system, maintain the necessary control over the aggregate active and passive positions of the institutions