BOARD OF DIRECTORS

BOARD RESOLUTION N° 146/2026

SUBJECT:
TREASURY MANAGEMENT - APPROVE THE REGULATION ON MONETIZATION, DISTRIBUTION, DESTRUCTION OF MONETARY MATERIAL AND TREATMENT OF COUNTERFEIT MATERIAL

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WHEREAS:

Law N° 1670 of 31 October 1995 of the Central Bank of Bolivia (BCB) and its amendments.

Board Resolution N° 94/2018 of 24 July 2018, which approves the Regulation on Monetization, Distribution, Destruction of Monetary Material and Destruction of Counterfeit Material and its amendments.

Board Resolution N° 85/2026 of 23 June 2026, which approves the BCB Bylaws.

Report BCB-GTES-SAOMM-DAMM-INF-2026-36 of 12 October 2026 from the Treasury Management (GTES).

Report BCB-GAL-SANO-DLBCI-INF-2026-261 of 12 October 2026 from the Legal Affairs Management (GAL).

CONSIDERING:

That Law N° 1670 in its articles 1 and 3 establishes that the BCB is the sole monetary and exchange authority of the country, with administrative, technical and financial competence and specialized normative powers of general application, in the manner and with the scope established in the Law; formulates policies of general application in monetary, exchange and payment system matters and executes monetary policy.

That the aforementioned Law provides in its articles 10 and 11 that the BCB shall exercise exclusively and non-delegably the function of issuing the monetary unit of Bolivia, which is the Boliviano, in the form of banknotes and metallic coins, which are legal tender means of payment throughout the territory of the Plurinational State with unlimited legal tender power.

That articles 44 and 54, paragraphs a), m) and o) of Law N° 1670, provide that the highest authority of the BCB is its Board of Directors, which has the powers to issue the rules and adopt the general decisions necessary for the BCB to fulfill the functions, competencies and powers assigned to it by the Law; to authorize and supervise the printing, issuance, destruction of banknotes, the minting and withdrawal of coins, and to approve.

BOARD OF DIRECTORS //2. R.D. N° 146/2026 CONSIDERING: modify and interpret the BCB Bylaws and Regulations, by two-thirds of the votes of all its members, without the need for any additional administrative act. That through report BCB-GTES-SAOMM-DAMM-INF-2026-36, the GTES concludes that the Regulation on Monetization. Distribution, Destruction of Monetary Material and Destruction of Counterfeit Material requires updating in order to adapt to the new organizational structure of the BCB, improving its wording, structure and content, as well as consolidating the amendments into a single normative body, which will allow having an updated and comprehensive instrument for more efficient application, its approval by the Board of Directors being technically viable. That through report BCB-GAL-SANO-DLBCI-INF-2026-261, the GAL concludes that the proposal of the new Regulation on Monetization. Distribution, Destruction of Monetary Material and Treatment of Counterfeit Material, is legally viable as it does not violate the current legal framework, therefore its approval corresponds to the BCB Board of Directors, in accordance with the provisions of article 54, paragraphs a), m) and o) of Law N° 1670 and items 1), 2). 9) and 22) of article 11 of the BCB Bylaws. THEREFORE, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES: That the Regulation on Monetization, Distribution. Destruction of Monetary Material and Destruction of Counterfeit Material has as its purpose to regulate the monetization, distribution, demonetization, destruction of monetary material and destruction of counterfeit banknotes seized by Financial Intermediation Entities and remitted to the BCB. That items 1), 2), 9) and 22) of article 11 of the BCB Bylaws determine that the Board of Directors has the powers to approve the general decisions and issue the rules necessary for the BCB to fulfill the functions, competencies and powers assigned to it by the Law; define the policies of the BCB, specialized normative powers of general application and internal rules; as well as establish administrative, operational and financial strategies of the BCB by approving its short and medium-term programs; approve the printing and issuance of banknotes and the minting of coins of the Boliviano and those issued for commemorative purposes, as well as their denominations, dimensions, designs and colors; approve, modify and interpret the BCB Bylaws and Regulations, by two-thirds of the votes of all its members, without the need for any additional administrative act. í '‘SW

BOARD OF DIRECTORS

//3. R.D. N° 146/2026

Article 1. Approve the Regulation on Monetization, Distribution, Destruction of Monetary Material and Treatment of Counterfeit Material, which forms part of this Board Resolution as an Annex.

Article 2. This Resolution shall enter into force from its publication.

Article 3. From the entry into force of this Resolution, Board Resolutions N° 94/2018 of 24 July 2018, N° 72/2020 of 4 August 2020, N° 84/2021 of 6 July 2021 and N° 25/2026 of 13 March 2026 are repealed.

Article 4. The Presidency and the General Management are entrusted with the execution and compliance with this Resolution.

La Paz, 13 October 2026

SIGNED. DAVID IVÁN ESPINOZA TORRICO, Claudia Haydee Pacheco Ayala, Dennise Sussan Martin Alarcón, Walter Fernando Orellana Rocha, Álvaro Alfonso Romero Villavicencio.

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ANNEX REGULATION ON MONETIZATION, DISTRIBUTION, DESTRUCTION OF MONETARY MATERIAL AND TREATMENT OF COUNTERFEIT MATERIAL

CHAPTER I PRELIMINARY PROVISIONS

Article 1. (Purpose).- This Regulation aims to regulate the monetization, distribution, withdrawal from circulation and destruction of monetary material (MM), as well as the destruction of counterfeit material held by Financial Intermediation Entities (FIEs), seized by the competent authorities and sent to the Central Bank of Bolivia (BCB).

Article 2. (Definitions).- This Regulation shall use the following abbreviations and definitions:

Double Series Banknote: A banknote made up of two fractions from different series, considered an adulterated piece. It has no legal value and is not eligible for exchange.

Unfit Banknote: A banknote issued by the BCB that retains its two signatures and at least one serial number, but which, in accordance with the Manual for the Selection of Bolivian Banknotes, must be withdrawn from circulation.

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Demonetization-. The process by which the BCB revokes the legal tender status and legal currency status of a coin or banknote.

Seizure: An act carried out by the competent authority, whereby formal possession of counterfeit material or double series banknotes is taken for investigation or disposal purposes in accordance with the applicable regulations.

Counterfeit Material: Bolivian banknotes or coins that are not issued by the BCB, but are produced for illicit purposes by third parties, imitating the characteristics and security features of the original banknotes and coins.

Monetary Material: Banknotes and coins issued by the BCB with legal tender status and legal currency status.

Unused Monetary Material: Banknotes or coins issued by the BCB, previously withdrawn from circulation and demonetized, destined exclusively for their physical destruction and with no possibility of reintegration into circulation.

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Monetization: A function exclusive to the BCB as the sole issuer of the Bolivian, through which nominal value is assigned to Bolivian banknotes and coins for their placement into circulation.

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CHAPTER II MONETIZATION OF BANKNOTES AND COINS

Article 3. (Authorization of Monetization).- The BCB Board of Directors shall, by express resolution, authorize the monetization of MM based on its availability and the requirements of the FIEs, and in accordance with the recommendation of the Treasury Management (GTES).

Article 4. (Certificate of Monetization).- Monetization shall be carried out in a ceremony attended by a Director appointed by the BCB Board of Directors, the General Manager and the Treasury Manager.

Article 5. (Dissemination).- Prior to the placement into circulation of a new family or series of banknotes or a new coinage that involves modifications to their design, security features or manufacturing material, the BCB shall disseminate the main characteristics of the new MM to the general public and the financial system.

CHAPTER III DISTRIBUTION OF MONETARY MATERIAL

Article 6. (Distribution).-

I. The GTES shall place the MM into circulation through the FIEs and the BCB itself.

II. The General Management (GGRAL) shall approve the distribution schedule for the MM on a semi-annual basis, based on a proposal from the GTES, in accordance with the requirements of the public, the availability of denominations in the vault and other factors it deems necessary.

Article 7. (Distribution of Banknotes through Automated Teller Machines).-

I. The BCB shall regulate the denominations of banknotes to be distributed through the ATMs of the FIEs, based on their characteristics.

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II. For control purposes, the FIEs shall report quarterly to the Financial System Supervisory Authority (ASFI) on the distribution of the MM carried out, detailing the denominations as stipulated by the BCB.

CHAPTER IV WITHDRAWAL, INVALIDATION AND DESTRUCTION OF MM

Article 8. (Withdrawal from Circulation of Unfit MM).-

1. The GTES shall proceed to withdraw from circulation the MM submitted by the FIEs once its condition as unfit MM has been verified.

II. The Board of Directors of the BCB may authorize the withdrawal from circulation of MM due to a change of family, series or other consideration.

Article 9. (Invalidation of MM).- The GTES shall proceed to the invalidation and demonetization of the MM withdrawn from circulation, for its subsequent destruction.

Article 10. (Destruction of MM).-

1. The GGRAL shall authorize the destruction of the invalidated MM in accordance with a schedule prepared by the GTES.

II. The invalidated MM shall be physically destroyed at BCB facilities.

III. The destruction of invalidated MM outside of BCB facilities must be authorized by the Board of Directors of the BCB.

IV. The MM destruction procedure shall be established by means of an Internal Circular of the GGRAL.

CHAPTER V TRACEABILITY AND CONTROL

Article 11. (Traceability and Control).- The GTES shall maintain control and record-keeping mechanisms that ensure the identification, traceability and verification of the MM withdrawn from circulation, invalidated or destined for destruction throughout all stages of the process, in accordance with the procedures approved by the GGRAL.

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CHAPTER VI COUNTERFEIT MATERIAL

Article 12. (Retention and Seizure of Counterfeit Material).-

I. The FIEs and the BCB shall proceed to the retention and registration of counterfeit material and double-series banknotes detected in their operations.

II. The counterfeit material retained by the FIEs or the BCB shall be brought to the attention of and submitted to the competent authority in accordance with current regulations for the corresponding investigations.

III. The conditions and operational procedures for the treatment of counterfeit material shall be defined by means of an Internal Circular of the GGRAL.

Article 13. (Destruction of Counterfeit Material).- The destruction of

counterfeit material, as well as the attached documentation submitted to the BCB by the FIEs or the competent authority, shall be carried out in accordance with an Internal Circular issued by the GGRAL of the BCB.

CHAPTER VII ADDITIONAL PROVISIONS

First Additional Provision. (Reproduction of Images of MM).- The partial or total

reproduction of legal tender MM by any natural or legal person shall only be permitted when:

a) The area of the reproduced material is at least 50% greater or smaller than the area of the original MM.

b) It does not include legends mentioning the BCB.

Second Additional Provision. (Specimens or Samples Without Value).- The GTES may

provide, on loan, specimens or samples without value to banknote printing companies for analysis purposes in the contracting and acquisition processes for MM. Any delivery and/or submission of such material must be authorized by the GGRAL.

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